Paragon and FIBA enhance service propositions

Paragon Bank

Paragon Bank has increased the procuration fee for brokers introducing product switches to the lender’s BTL mortgages.

Brokers will now get a proc fee of 0.40% (previously 0.30%) for every product switch booked from 1st March onwards.

This comes after last week’s announcement that Paragon has extended the window in which BTL mortgage customers can switch to a new product to six months.

Moray Hulme, director of mortgage sales at Paragon Bank, said: “We know that 2022 will see a large number of mortgages reach maturity and, at a time of considerable economic uncertainty, a significant number of landlords will seek to switch over to a new, competitively priced product at the earliest opportunity. 

“This latest measure is part of our wider work, where we’ve adapted both products and processes, to support these landlords. 

“We recognise that brokers play an important part in this too — the amount of work that goes into placing a product switch can be almost that of placing a new mortgage — so the increased procurement fee is to reflect the value of the intermediary in the process.”

FIBA

FIBA has partnered with insurance provider Berkeley Alexander to launch a commercial insurance solution exclusively available for FIBA members.

The service was designed to complement the commercial finance arranged for bridging, development, specialist BTL or commercial property funding for both purchase and refinance.

The solution will help FIBA members find the right provider for commercial insurance to suit their clients’ needs.

Adam Tyler, executive chairman at FIBA, said: “For many years, I have seen brokers involved in commercial finance benefit from customer introductions for commercial insurance purposes. 

“There is now a straightforward and compliant route through FIBA to provide our members’ customers with this extra benefit. 

“We are committed to ensuring our members can provide a full service to their clients for their commercial lending requirements, thereby further supporting their advice and strengthening their proposition and value.”

Mark Hutchings, managing director at Berkeley Alexander, added:  ”We are extremely excited to be working with FIBA, providing members with a simple referral service for insurance and expanding their service offerings. 

“We look forward to building a long-term relationship that will benefit both the membership, and their clients.”