FSA cuts fees for mortgage firms

The Financial Services Authority has cut the annual fees mortgage firms have to pay.

The minimum fee for mortgage firms has been reduced to 650 for 2007/ 08 from 699 in 2006/07. The fee for the Financial Ombudsman Service will be 50.

The FSA says these reductions are because of higher than expected busi-ness volumes as well as there being more firms in some fee blocks than others. Graeme Ashley-Fenn, director of the contact, revenue and information management division at the FSA, says: “Fees will be lower than thoseproposed during the recent consultation.”

Peter O’Donovan, mortgage manager at Bestinvest, says: “Any reduction in fees is good and will help smaller brokers in particular. It’s good to see the FSA is looking at its fees and changing them.”