As a result it has maintained its intermediary levy fee for the forthcoming financial year at £27m.
However, it is cutting £30m from its staffing budget – £20m of which is coming from contractor staff.
Complaints relating to mortgages and home finance fell by almost 1,400 during 2016 as the sector compared favourably to the rest of financial services.
In total, FOS is expecting 330,000 complaints in the 2017/18 financial year with a budget of £230m.
More than half of the complaints (180,000) are predicted to be from Payment Protection Insurance (PPI).
Of the remaining sectors, banking and credit is expected to see the largest complaint volume (97,000 total), with 15,000 related to packaged bank accounts and 10,000 about payday loans.