View more on these topics

AMI says most brokers will pay at least 15% more in FSA fees

The Association of Mortgage Intermediaries says most brokers will pay at least 15% more in Financial Services Authority fees in 2011/2012.

The FSA’s Annual Funding Requirement for 2011/12 was released yesterday and AMI has called for a detailed FSA response to explain what the mortgage industry’s £28m fees are spent on.

And Robert Sinclair, director of AMI, says the fall in broker numbers means the small reduction in fees will have little impact.

He says: “Indeed, given the burden will be borne by fewer intermediaries, most firms will pay at least 15% more.

“Last year’s fees were of a similar amount but included costs associated with individual registration. As this cost has now been delayed, we must ask why any savings do not appear to have been passed on to the intermediary sector.”

He adds: “With the significant increases in fees for our lender partners, the mortgage community must ask what it is getting for its £28m in total costs.

“This figure seems disproportionately large given the total cost of £4m paid in 2004 under the Mortgage Code Compliance Board. This requires a detailed response from FSA.

“FSA must ensure that costs accurately reflect the systemic risk posed by individual sectors, and the relatively small risk posed by the intermediary community, which is better secured by the vigilant lender community we have today.”

Recommended

GEMMA_HARLE.jpg

Risks will expand as competition shrinks

Some of the more obvious effects of the malaise in the mortgage market are the lack of competitive lending and falling distribution. Networks and clubs continue to merge and the barriers to entry for new players in the residential lending sector remain high. This is an inevitable consequence of the financial crisis but it is […]

Precise aiming for clients shunned by high street lenders

Precise Mortgages has launched 50 products for borrowers who are finding it difficult to get a mortgage on the high street. The range of near-prime deals includes two-year trackers, capped and fixed rate loans starting from 4.79%. The lender says it is looking for mature borrowers with substantial deposits and robust affordability. Alan Cleary, managing […]

thumbnail

What employers should expect over the next five years

A major feature of our articles is looking into the Jelf Employee Benefits crystal ball to predict changes and trends that may influence the short and medium term shape of UK employee benefits.  By flagging such changes early we aim to provide our followers with the tools to make sensible and informed decisions on their benefits offerings.

Newsletter

News and expert analysis straight to your inbox

Sign up