Virgin Money has confirmed it will be rolling out product-switching with procuration fees for brokers from July, if not sooner.

Jeremy Duncombe, director of Legal & General Mortgage Club, said: “The announcement that Virgin Money intends to pay a competitive proc fee to brokers for product switches is welcome news, as it recognises the increasing importance, cost effectiveness and quality of the intermediary channel for lenders.

“Legal & General Mortgage Club has been working closely with lenders on the subject of proc fees for years, so it’s fantastic that Virgin Money will soon be making payments that reflect the hard work which has gone into the service that brokers provide.

“This change sends a very strong message to the industry, and adds to the growing number of lenders now paying fees for retention. We expect to see this trend continue with more lenders following suit.”