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.”
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Notes to Editors
Santander UK is a financial services provider in the UK that offers a wide range of personal and commercial financial products and services. At 30 December 2019, the bank had around 23,500 employees and serves around 14 million active customers, via a nationwide branch network, telephone, mobile and online banking. Santander UK is subject to the full supervision of the Financial Conduct Authority (FCA) and the Prudential Regulation Authority (PRA) in the UK. Santander UK plc customers’ eligible deposits are protected by the Financial Services Compensation Scheme (FSCS) in the UK.
Banco Santander (SAN SM, STD US, BNC LN) is a leading retail and commercial bank, founded in 1857 and headquartered in Spain. It has a meaningful presence in 10 core markets in Europe and the Americas, and is one of the largest banks in the world by market capitalization. Its purpose is to help people and businesses prosper in a simple, personal and fair way. Santander is building a more responsible bank and has made a number of commitments to support this objective, including raising over €120 billion in green financing between 2019 and 2025, as well as financially empowering more than 10 million people over the same period. At the end of 2019, Banco Santander had EUR 1.05 trillion in total funds, 145 million customers, of which 21.6 million are loyal and 37 million are digital (52% of active customers), 12,000 branches and 200,000 employees. Banco Santander made underlying profit of EUR 8,252 million in 2019, an increase of 2% compared to the previous year.
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