Mortgage firms have seen a 7.1% increase which reflects the scope change costs of implementing the Mortgage Credit Directive.
The regulator has defended its proposed 7.1% fee hike, claiming that 89% of mortgage intermediaries won’t see their fees increase because they are below the minimum threshold.
Speaking at the Mortgage Business Expo in Leeds Lynda Blackwell, mortgage sector manager at the Financial Conduct Authority, said: “Mortgage firms have seen a 7.1% increase which reflects the scope change costs of implementing the Mortgage Credit Directive.
“Fees always tend to be a hot topic among intermediaries but think it is worth remembering that small firms paying minimum fees are not affected by the increase - it's the larger firms which pay the variable rates.”
The minimum fee outlined in the Financial Conduct Authority’s latest business plan remains the same this year as last at £1,084.
But Robert Sinclair, chief executive of the Association of Mortgage Intermediaries, dismissed the claim saying “as usual FCA wishes to trivialise real issues”.
He said: “The smallest firms face the additional costs of consumer buy-to-let registration and consumer credit annual fees, which are outside the minimum fee.
“This response again misses the point that a less than £1bn sector adds 7% to the costs of a £220bn market.
“The FCA appears to forget they blamed last year's increase on the directive.”
