Having already stated its intention to see greater transparency in exit fees charged by lenders, it is speculated that the regulator is considering starting up a new review focusing on valuation fees.
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A Mortgage Introducer source, said: “With a number of lenders having launched automated valuation models (AVMs) over the past year to speed up their offerings, lender’s valuation fees should be roughly the same. I think the FSA will be targeting companies and making sure that all of the fees add up.”
Tamsin Hemsley, spokesperson at Nationwide Building Society, said: “The investigation of exit fees has prompted other fees and charges to be looked at by the regulator. The introduction of AVMs means that the possible investigation of valuations does make sense.”
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She added: “We will participate fully in any investigation that the regulator undertakes.”
However, Rob Clifford, managing director at Mortgageforce, admitted that the regulator’s speculated move could damage the industry.
He said: “Looking into valuation fees could be a step too far. There is a real danger that the regulatory regime could undermine the commerciality of the sector.”
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Clifford urged the regulator to focus on more consumer-facing concerns.
However, a spokesperson at the FSA confirmed that any review into valuation fees was unlikely to be on the same scale as its current review into lender exit fees.
