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Poll: Will lender fee caps impact your fee structure?

  • 14/05/2024
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Poll: Will lender fee caps impact your fee structure?
Broker fees have come under scrutiny in the last few weeks following the decision from Halifax to publicly confirm that maximum broker fee caps will come into force from June.

In a note to brokers, the lender said that a fee cap of 1% or £1,500 – whichever is greater – would apply, adding that it was partially due to Consumer Duty.

The Association of Mortgage Intermediaries (AMI) said that the decision to publicise the fees “stretches their Consumer Duty accountabilities to an extreme” and imposed the lender in the “wrong part of the process”.

However, the trade body said that it had no issue with the amount cited or with lenders actively reviewing fees internally, but it was worried that it will encourage other lenders to add their policies to the public domain, leading to a range of fee caps and added confusion.

Brokers surveyed by this publication agreed that the fee level was acceptable, but expressed concerns that fee caps could backfire and lead to some to increase their fees and that other lenders could put lower limits in place, and it could dissuade brokers from taking on complex cases.

So, in this month’s Mortgage Solutions poll, we want to ask whether lender fee caps will impact your fee structure.

Will lender fee caps impact your fee structure?

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