Director

The argument that banning proc fees to avoid product bias is completely flawed. In the current climate there is no significant difference between providers. What evidence do they have that it is/was widespread? If they have evidence, which could easily be collated from the RMAR returns and lenders, then they should be taking appropriate action against firms that have provided inappropriate advice in favour of a higher proc fee. I hope the FSA see sense and don't force the consumer to pay for good quality independent mortgage advice. Leaving those that decide not to pay at the mercy of the bank staff, who have an excellent track record of inexperience and mis-selling.

Posted by: David Rolleston

Proc fees must stay

We have a mortgage broking arm to our Practice which charges fees and/or commission which works well. The amount of proc fee in relation to the amount of interest charged by the lender is miniscule.Are the FSA proposing the client should pay fees on top of interest and arrangement fees. I have also researched factory gate pricing which allows the provider to increase profits to the detriment of the client. At year 10, at 6% projection the client is £11000 worse off than through a commission based model.Transparency at it's finest! Totally flawed.Stakeholder pensions failed,Cat standards made no diffference and less people are saving but why take any notice? 86% of our clients prefer the commission model but why ask them?

Posted by: Peter Taylor