StrideUp has announced an increase in its procuration fees for complex buy-to-let (BTL) cases, enhancing rewards for brokers while simultaneously reducing rates for clients. This move is significant as it reflects StrideUp’s commitment to supporting the specialist mortgage market, particularly for landlords and investors dealing with more intricate property arrangements.
TL;DR: StrideUp raises proc fees for direct submissions and through networks; this benefits brokers and landlords seeking complex BTL financing.
How Have Proc Fees Changed?
StrideUp has increased its procuration fee for cases submitted directly to the lender and for submissions via a network or club, effective until the end of August. This is an improvement from the previous maximum. This change is designed to reward brokers more generously for handling complex cases, which often require additional expertise.
What Are the New Product Offerings?
The lender has introduced a two-year fixed residential HMO (House in Multiple Occupation) or MUFB (Multi-Unit Freehold Block) product, available at 65% finance to value (FTV) and 75% LTV. StrideUp has also expanded its criteria, doubling its HMO limit and MUFB limit, with financing available up to a significant amount per property.
What This Means for the Mortgage Market
For landlords, the increased proc fees and enhanced product offerings mean better financial incentives when working with brokers on complex BTL cases. Brokers, in turn, will benefit from higher rewards for their efforts in navigating these specialist cases. This dual approach of cutting rates while increasing fees is aimed at making StrideUp a more attractive option in the competitive mortgage market. For those interested, checking current mortgage rates can provide additional insights.
Frequently asked questions
What types of properties qualify for StrideUp’s new products?
StrideUp’s new products are aimed at residential HMOs and MUFBs, accommodating larger properties with specific limits on the number of units and bedrooms.
How can brokers benefit from the increased proc fees?
Brokers can earn higher fees for complex BTL cases, providing a stronger financial incentive to assist clients with these more challenging mortgage applications.