Brokers’ fees will rise by 8.5 per cent next year, the FCA says.
In a paper on proposed fees and levies published last week, the FCA says fee block A18, which covers brokers, will pay £17m in regulatory fees this financial year, up from £15.2m the previous year.
Moreover, the minimum fee will be set at £17 per £1,000 revenue, down from £17.53. However, as mortgage firms are set to see revenue increase by a predicted average of 20 per cent this year, they will pay more overall.
Brokers will also be charged a separate fee if they wish to advise on consumer buy-to-let, which will become regulated as part of the FCA’s implementation of the EU’s Mortgage Credit Directive. It comes into effect in March 2016.
Firms with existing Part 4A or interim credit permissions will have to pay a registration fee of £100 to be authorised to give consumer buy-to-let advice, while those without it will pay £500. On top of this, periodic fees are expected to be £250 for brokers.
Association of Mortgage Intermediaries chief executive Robert Sinclair says: “At a point when we are still in a fairly fragile recovery, it seems unbelievable [to see such an increase in fees].”