FSA introduces £1,000 flat fee for mortgage firms

The Financial Services Authority has followed through with its plan to introduce a £1,000 flat fee for regulated mortgage firms – a 33% fee increase.

The regulator has increased its annual funding requirement for the mortgage sector from £10.9m in 2009/10 to £14.4m for 2010/11.

Larger mortgage firms and networks will have to use the FSA’s calculator to work out what they will pay on top of the flat fee.

The regulator says its costs are rising in the sector, primarily due to its work on the Mortgage Market Review and enforcement activity in relation to mortgage fraud.

Robert Sinclair, director of the Association of Mortgage Intermediaries, says: “For those paying minimum fees and holding insurance permissions the rise will be limited.

“But for larger firms and those without insurance permissions fees will rise significantly, and in some cases disproportionately.”