Santander simplifies procuration fee
Santander for Intermediaries is today announcing changes to the procuration fee paid on residential and buy-to-let mortgages. The changes will apply from 1 May 2020.
On residential mortgages, Santander is removing the minimum procuration fee of £250. The actual procuration fee percentage paid on residential purchases will remain unchanged. The change means that the procuration fee will now always directly relate to the value of the mortgage.
On buy-to-let mortgages, Santander is reducing the procuration fee from 0.5% to 0.45%. The move brings the fee closer to the residential mortgage procuration fee paid by the bank, as the gap between residential and buy-to-let mortgage pricing continues to narrow.
Both the residential and buy-to-let procuration fees remain highly competitive in the mortgage market.
Santander is also today introducing automated valuation mortgages (AVM) across its entire buy-to-let remortgage range. Under the new system, where valuation and rental income estimates on remortgage applications match system estimates on AVM, Santander will no longer require a formal valuation visit to the property. The move is designed to streamline the valuation process for landlords and remove inconvenient or unsettling visits for tenants.
Lindsey Mitchell, head of Santander for Intermediaries, commented: “Remortgaging doesn’t need to be a difficult process for brokers and landlords or create tension with tenants.
“Our new streamlined approach using the AVM system will make obtaining a property valuation quick and easy, while our updated procuration fees continue to offer good value to the brokers who we work so closely with.”
