LBG to stop paying proc fee parity on product transfers - Comments from JLM Mortgage Services

28 November 2025

Comments from Sebastian Murphy, JLM Mortgage Services

“You would say LBG has been something of a lender outlier when it comes to PT procuration fees and maintaining parity with new business, but make no bones about it, this has been an excellent policy - one that has shown a real commitment to advisers and the work we carry out. And, in announcing this new procuration fee structure, there are a number of positives such as an increase in proc fee for first-time buyer business. However, to say the decision to cut PT proc fees is disappointing would be a huge understatement, coming as it does after a number of other decisions from LBG which appear to show a lessening of its commitment to advisers and the value of advice.

“For example, BM Solutions – up until now a wholly intermediary-focused lender – has communicated that it will deal with existing borrowers direct. Plus, Halifax has been using its banking app to directly market its mortgage proposition to customers, with no mention of advice or the originating adviser when it comes to existing borrowers. Instead, its communications have urged the customer to contact them direct about their next mortgage, or to look at price comparison sites. Combined it appears to show a concerning direction of travel from LBG.

“Finally, two points about timing. Firstly, LBG has decided not to announce this direct, instead doing so via mortgage clubs. Secondly, it chose the week of the Budget to do this, which smacks of opting for a ‘good day to bury bad news’, no doubt anticipating how deeply unpopular parts of this announcement, particularly PT proc fee levels, would be amongst advisers.”