The Financial Services Compensation Scheme has confirmed that mortgage brokers will have to pay a £15m supplementary levy this year.
The levy, mooted last December, will pay for “unforseen compensation costs” in the 2016/17 year, according to the lifeboat fund.
The FSCS says the levy is needed because if the cost is carried over into 2017/18 then the bill might get passed on to other areas of financial services.
The claims body says: “The FSCS is raising a supplementary levy against home finance intermediaries because of the risk that, if carried over into 2017/18, the £15m shortfall might result in the £40m annual limit for these firms being exceeded.
“This will impose costs on other industry sectors through a cross subsidy.”
The FSCS’ latest business plan, published today, shows the £40m limit could be breached because the body expects its mortgage broker levy for 2017/18 will rise to £14m from £6m in 2016/17.
The business plan says one unspecified firm is responsible for most of the claims that led to the £15m levy.
It says: “Although claims volumes have risen for this year, and into 2017/18, this is distorted by the level of compensation forecast for claims against one particular firm which accounts for nearly 70 per cent of the forecast costs.
“These are claims for advice to remortgage domestic residences to invest in high risk property schemes.
“Stripping out these claims reduces the level towards those experienced over recent years, so that on current evidence we would not expect this level of costs to continue into future years.”