Lloyds Banking Group (LBG) has informed mortgage advisers it will no longer pay the same procuration fee on product transfers (PTs) as it does for new business from 5th January 2026.
A Halifax for Intermediaries spokesperson said: “We review our full range of procuration fees annually, ensuring they reflect the complexity of business advice and value brokers provide.
“Effective from 5th January, the new fees do this, and ensure we continue to offer fair value for mortgage customers and provide competitive guaranteed minimums to brokers.”
An email sent by Esther Dijkstra, managing director, intermediaries at Lloyds Banking Group, informed brokers: “I think it’s fair to say the market has been somewhat of a rollercoaster over the past twenty years or so – peaking in the early 2000s, the crash of 2008, rebuilding the market, lockdown and then the tumultuous period following the mini-budget.
“Throughout all of this we kept the same procurement fee structure.
“The mortgage market also evolved over this period, whether that’s the economic or regulatory environment, products, affordability models, or the improving technology available to support the important work that you do.
“Like any business, we need to adapt to these changes in the market.”
Dijkstra added: “I understand there is never a great time to make a change like this but, now as conditions are calmer and the flow of lending across all segments is expanding, it’s one we should and must face into.
“Before getting to this point, we went through a thorough review to ensure what we have delivers a fair outcome for both our intermediaries (including across both strategic partner networks and clubs) and our customers – reflecting the quality and complexity of business, regulatory demands and the impact that technology has had on the work involved.
“We have also made sure that the changes are equitable across our strategic partner networks and clubs.”
She said: “We believe the new fee structure we’ve arrived at achieves this and underlines our commitment to you with fairer rewards.
“For the first time you will have minimum fees and fees that reflect the amount of work you need to do to submit business to us.
“And we will remain the lender paying the highest for procuration fee for product transfers across the top six lenders – business you do not because it’s fee-based but because it’s the right thing for the customer.”
Reacting to the announcement, Sebastian Murphy, group director at JLM Mortgage Services, said: “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 that 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.”
Murphy added: “For example, BM Solutions – up until now a wholly intermediary-focused lender – has communicated that it will deal with existing borrowers directly.
“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.”
He said: “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.”
