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Mortgage broker FCA fee rates fall 1.5 per cent

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  • 07/04/2020
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Mortgage broker FCA fee rates fall 1.5 per cent
Mortgage brokers will be paying lower fees to the Financial Conduct Authority (FCA) for the 2020/21 financial year.

 

The regulator has cut the rate at which mortgage broker firms’ fees are calculated per £1,000 of income by 1.5 per cent.

According to its CP20/6: Regulated fees and levies: rates proposals 2020/21 paper, the regulator is increasing the total amount it collects from the A.18 Home finance providers, advisers and arrangers block by three per cent to £1.9m.

However, due to an increasing number of firms in this area and other fees being carried over, individual firm fee rates will be cut by 1.5 per cent.

In its appendix, the FCA showed that for firms with annual income exceeding £100,000, the fee paid rate will fall to £10.60 per thousand or part-thousand pounds of annual income.

The rate for 2019/20 was £10.764 per thousand pounds of income.

 

Fee totals

Overall, the FCA will see its annual funding requirement (AFR) increase by 5.2 per cent in 2020/21 to £587.6m, the regulator announced.

FCA solo-regulated firms in the A.0 minimum fee block will once again pay £1,151 for 2020/21 and be given until the end of the year to do so.

It has increased fees in other fee blocks, including the A.2 Home finance providers and administrators and sections, which will see individual contributions rise by 4.3 per cent.

The fee rate for these firms issuing more than 50 mortgages increases to £2.706, up from £2.594, per mortgage issued.

It is also proposing to hold fees for firms that only pay minimum fees and offering a two-month extension for medium and smaller firms to pay those fees, giving them a full 90 days to make the payment.

 

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