HSBC to pay retention proc fees

HSBC is to start paying brokers retention procuration fees of 0.2 per cent when they carry out a product transfer for clients.

The lender now has 88 intermediary firms on its panel meaning that a total of 13,000 brokers have access to its products.

The new retention proc fees will be paid when existing HSBC borrowers who took out their loans via brokers switch onto a new mortgage with the lender when their current deal ends.

HSBC UK head of intermediary mortgages Chris Pearson says: “Since confirming our presence in the market in July 2015 we have steadily and systematically grown our intermediary panel to ensure we provide brokers with the high level of service they need, alongside attractive products that their clients will want.

“We have listened to feedback from brokers. Following significant investment in our broker platform and significant improvements to make the application process more frictionless, we are now able to accept applications from brokers with returning clients looking to product switch, plus introducing associated procuration fees, more signs of our continued support for the intermediary market.”

HSBC’s latest additions to its panel include HQ Mortgage & Finance and First Union Mortgages.

The news comes after figures yesterday from UK Finance revealed that the total value of product transfers reached nearly £50bn in the last quarter of 2018.

There were 331,500 product transfers, worth a total of £46.1bn.

Of these, 176,700, at a value of £25.2bn, were performed with the help of an adviser, with the remaining being execution-only.

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