Brokers who switch their clients on a ‘like-for-like’ basis – where a client isn’t moving home or wanting to increase their borrowing - to another First Active product when their existing First Active deal ends will receive the new standard proc fee of 0.20 per cent of the balance transferred. There will be no minimum or maximum proc fee.
The new fee along with a streamlined application process for ‘like-for-like’ switching is effective from 1 November.
A specialist team and new application process with streamlined documentation has been put in place to deal with ‘like-for-like’ switching. Brokers need only phone RBS Intermediary Partners with their FSA number, their client’s name, address and mortgage reference number, answer their security questions and state the new deal that they want.
‘Know Your Customer’ documentation is not required as the identification checks will have been done when the original application was submitted. And, there is no need for any underwriting documentation because the client is not looking to borrow any more or move home.
Chris Pearson, director of intermediary mortgages at Royal Bank of Scotland, commented: “Following consultations with many of our business partners, the consensus was that it was preferable to have a straightforward and transparent repeat proc fee so that everyone knows where they stand.
"By streamlining the amount of paperwork and setting up an easy-to-follow phone-based application process, it should be a hassle-free way for intermediaries to remortgage their clients. I am sure that brokers will welcome this new approach to remortgaging.”
