Mortgage News
Mortgage broker levy for Financial Services Compensation Scheme confirmed
Mortgage brokers’ levy for the Financial Service Compensation Scheme (FSCS) is to be frozen in the coming financial year – even though the fund is set to lose around £5m this year on home finance claims.
The FSCS said an increase in uphold rates has led to an upward revision of compensation costs in the sector – from £13m to £18m in 2017/18.
Uphold rates have jumped from 29% to 43% since the start of year and there has also been a slight increase in the processing rate of claims.
However, the deficit is not large enough to warrant an increase in the levy, the FSCS said.
In an outlook update for 2018, the FSCS said: “We are now forecasting a £5m deficit at the end of the levy year, but this would be too small to consider a supplementary levy under our current policy.”
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