Regulatory fees in the UK for mortgage brokers will increase this year until 2011, according to the Association of Mortgage Intermediaries (AMI).
Robert Sinclair, director of AMI, said that "the FSA proposals represent a substantial increase in fees for mortgage intermediaries who already face a tough economic situation. Mortgage intermediaries were already paying a disproportionate share of regulatory costs, which are ultimately and inevitably met by consumers.”
"For those mortgage intermediaries paying just minimum fees and who also hold insurance permissions the increase will be limited. But for larger firms, and those without insurance permissions, their FSA fees will rise in some cases disproportionately and significantly,” he added.
Mr. Sinclair said that AMI has agreed to the FSA’s decision not to increase the fee tariff rate for mortgage intermediaries from that proposed in the consultation paper.
AMI said it would still implement a fairer cost distribution system for the intermediary sector.
The Association of Intermediary Financial Advisers (AIFA), on the other had, said the smallest directly authorized company will see reduced fees but others would not be so lucky.
"Overall, the cost per adviser has increased by between two percent and nine percent over the consultative rates for IFAs not holding and holding client money respectively. This is due to the combination of a further increase in funding requirements combined with a small reduction in overall numbers of advisers," said Chris Cummings, director general of AIFA.