IFAs must have CCLs, awarded by the Office of Fair Trading (OFT), to give mortgage advice and advising without one is punishable by imprisonment.
However, the OFT said it must increase fees in order to meet the rising cost of scrutinising practitioners who engage in “high risk” activities.
From 11 April the price of an application for a CCL for a sole trader increased by £21 from 2010’s figure.
Applications for CCLs for companies, partnerships or organisations now cost £51 more than last year.
Sole traders must pay £435 for the licence and the consumer credit jurisdiction (CCJ) levy of £150. Companies must pay £1,075 for their CCLs and a £150 levy.
There are further charges for any changes to the licences and the fee must be paid in full upfront.
The fee will only be fully refundable if applicants withdraw applications within two working days of it being received by the OFT, if the OFT gave applicants incorrect information, or if the fee was overpaid.
“The OFT has a responsibility to scrutinise all licence applications which includes assessing competence,” a spokesperson for the department said.
“Where businesses wish to engage in activities of high risk to consumers, such as debt counselling and secured sub-prime lending, the level of scrutiny is increased.
“Assessment can include site visits, staff interviews and compliance reviews.”
The OFT has the power to revoke licences or impose requirements on practitioners it finds lacking.
Ray Watson, OFT director of consumer credit, said the OFT strives to keep costs to businesses down but its duty to protect consumers is paramount.
