Fiver fee &#39carved out&#39

Fee-charging brokers are looking forward to the Treasury&#39s pledge to “carve out” Section 155 of the Consumer Credit Act – the cap that stops them charging more than £5 for advice not leading to a mortgage contract.

The Treasury acknowledges there are occasions “when the appropriate advice is not to take out a mortgage” and could pave the way for brokers to claim fees that reflect this.

Kevin Morgan, managing director of Hertfordshire-based EZI UK, says: “This is excellent news, quite right and long overdue. It&#39s nice to see IFAs will get recognition for the added value they put into advice.” Britannic Money&#39s James Mayne says: “I&#39m sure consumer groups will push for some kind of cap on the fees brokers retain. If the FSA can set a more reasonable figure of £150 or £200 it will get universal support.”