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NatWest has increased its maximum procuration fee for buy to let mortgages from £6,000 to £10,000.
The lender has also increased its fee for residential and product transfers. NatWest has stated that the move comes ‘following market feedback from our brokers.’ It is intended that the scheme will happen as a six-month pilot.
The change is targeted at advisors in London and the South East as it is within these areas that prices are high enough to generate higher procuration fees.
NatWest made the announcement earlier this week.
Principal of Rest Assured Mortgages in Bournemouth, Rob Ashley-Roche, was less than pleased about the growth in fees: ‘The rich get richer – I’ve never had proc fee approaching £6,000 let alone £10,000! People that have pushed for this will be the big brokers in London.’
A NatWest spokeswoman said: ‘We constantly review our proposition to ensure we’re in line with the market. We recently implemented an increase to our maximum procuration fee in response to feedback from brokers who had been asking for this for some time.’
Aldermore has also announced changes to its buy to let deal. The specialist bank has revealed that there have been some criteria changes for buy to let borrowers. They have lowered ICRs for basic rate tax payers and offer new build flats up to 70 per cent LTV for first time landlords and 75 per cent LTV for existing landlords. There will also be a reduction in the minimum valuation on ex-public sector property located outside of greater London.
Director of Mortgages at Aldermore, Damian Thompson, said: ‘We are pleased to announce the latest updates to our proposition for residential and buy to let mortgages. The latest changes come at a time when it is vital to provide support in a challenging housing market – whether they are a first time buyer with little or no deposit or a landlord looking to invest in a new property or remortgage an existing one.’