Mortgage broker fees to be increased by FSA.

The fees mortgage brokers pay are being subject to an increase according to the Financial Services Authority.

The Annual Funding Requirement for 2012/13 is £578.4 million, up from £500.5 million in 2011/12 which is a gross increase of 15.6 per cent in overall funding.

Mortgage brokers will have to pay the FSA £13.43 for every £1,000 of their annual income, which is an increase from £13.12 per thousand in 2011.

The fees payable to the Money Advice Service, which is the Consumer Financial Education Body, will increase from £1.36 to £1.51, for every £1,000 of brokers annual income. The fee to the Financial Ombudsman Service - the Ombudsman Compulsory Jurisdiction levy has fallen from £110 to £50 per firm.

Robert Sinclair, director of the Association of Mortgage Intermediaries commented saying that AMI continues to be concerned over the significant costs being absorbed by the mortgage advice industry.

The on-going cost to mortgage intermediaries of £15m for the MMR and supervision remains a significant proportion of the overall FSA budget. He added that while the AMI are seeing restraint from the Ombudsman and the Compensation Scheme, they remain are concerned about the wider industries bill for the Money Advice Service.

The regulator said that the increase in fees would be borne mainly by larger mortgage broking firms, reflecting the resources required for intensive supervision of high impact firms. Mortgage lenders plus general and life insurance providers, will see their fees increase by as much as 37.3 per cent.

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