MMR: Industry facing £170m annual bill
Share
The mortgage industry could be left with an annual bill of £170m to comply with the Mortgage Market Review proposals.
In its MMR paper published today the Financial Services Authority revealed there would also be a one off implementation cost of up to £65m.
One off costs are estimated between £40m and £65m while ongoing costs range from £47m to £170m a year.
The one off costs relate to £3m to £15m for affordability changes, £14.7m for interest-only and between £22m and £33m for distribution and disclosure.
For additional income verification checks costs are estimated between £7.1m and £10.3m annually, affordability checks will cost between £4.8m to £14.3m while interest-only hits £16.7m.
The capital compliance costs for non-bank lenders could cost anywhere between £16m and a whopping £126.8m.
The FSA estimates the costs to itself will be negligible while Mortgage Strategy recently revealed it has cost £2.7m to put the regulation paper together.
If you enjoyed this article, sign up here to receive daily email updates from Mortgage Strategy and Follow @mortgagestrat
