The FSA commissioned independent economic consultancy Oxera to assess the implementation and compliance costs to firms of the Mortgage Market Review (MMR) consultation paper proposals.
Oxera estimated that the total cost to the industry of implementing the changes will be between £3m and £15m, with annual costs to the market of between £5.8m and £20.3m for income verification and assessing affordability.
In addition, Oxera estimated that the incremental additional costs per mortgage sale will be between £3 and £12.20.
A CML spokesperson said: “It may not seem like a large amount for the whole industry, but it could have a large effect on the recovery of the market, especially with lending already constrained and likely to reduce further as government support schemes come to a close next year.”
