The FCA has proposed an increase in the costs for mortgage providers and brokers after an increase last year.
In a consultation document today, the supervisor says that its annual financing requirement (AFF) increased by around 4% from £ 755 million in 2024/25 to £ 784 million for 2025/26.
This proposed allocation to mortgage providers and brokers, both of which fall into the A.18 group “Home Finance Providers, Advisers and Arrangers” is £ 23.5 million for 2025/26.
This has risen by 2.2% or by £ 0.5 million from £ 23 million for 2024/25.
For mortgage lenders who fall into the A.2 reimbursement block, which also covers ‘home financing providers and managers’, the FCA proposes an increase of 1.8% from £ 23.6 million to £ 24 million.
The supervisor has proposed the minimum financial ombudsman tax for mortgage advisers from £ 85 to £ 95 in 2025/26, which will yield an estimated £ 470.815.
The proposals suggest that lenders and brokers will also see increases in the levy they pay for money guidance and debt advice, which is around £ 2 million extra costs.
In July the FCA publishes its final reimbursement schedule and the answers from the industry to this consultation.
The news comes as Regulator also says it will help “bring innovative products and services to the market faster” because it starts the first year of being New five -year plan.