The proposals in the latest consultation paper will incur one-off costs from £40m to £65m to implement in its current form.
Changes to non-bank lenders' capital compliance rules could affect the cost for the industry the most from £16m up to £126.8m per year however the Financial Services Authority expects this cost to be at the lower end of this range.
Distribution and disclosure compliance will be the largest one-off cost to the industry from £22m to £33m.
The FSA estimates tThe MMR as a whole is likely to be net beneficial. On a per mortgage borrower basis the net well-being benefit is about £350, the benefit from reduced arrears is about £10; and the compliance costs are up to about £120 per borrower.
