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FSCS increases broker bills for 2018/19

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Mortgage brokers will see their FSCS bills rise by £8m in in 2018/19, according to final figures from the lifeboat fund.

The total levy for mortgage intermediaries will be £22m, compared to £14m in 2017/18.

In January the FSCS was provisionally forecasting a £17m levy for the 2018/19 year. The £3m rise on 2017/18 was due to a cost in the increase of handling claims, largely against failed firm Fuel Investments.

The FSCS has now raised the bill again due to getting more claims against Fuel.

An FSCS statement says: “Claims continue to be received for this class against Fuel Investments. Contrary to previous expectations, there are indications of a greater number of claims, which, along with higher uphold rates and the expensive nature of the claims, has meant that the forecast for new claims for this class has risen by £5m to 31 March 2019.”

However, over the longer term mortgage brokers’ FSCS bills are set to drop following an overhaul of how the lifeboat fund works out the charges.

The FSCS will levy a total of £407m against all firms.

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