Halifax to cap mortgage broker fees

Halifax has announced that it is introducing a new policy capping the amount clients can be charged by brokers for mortgage applications.

The lender said that following the introduction of Consumer Duty, it wants to ensure that it is meeting the 'fair value' aspect of the regulation for consumers.

A cap of 1% or £1,500, whichever is higher, will apply from the 1st of June. This means that for a £100,000 loan there would be a maximum fee of £1,500 and for a £200,000 loan a maximum fee of £2,000 will apply.

In a note to brokers, Halifax said: “Following the Financial Conduct Authority’s implementation of Consumer Duty, we have continued to work through its requirements to ensure we are meeting our responsibilities as a lender.

“As part of those requirements, we must ensure customers receive fair value from the service received for any fees paid in our distribution chains, including mortgages.

“After analysis of customer fees within the mortgage chain, we have introduced a policy that outlines the maximum brokers can charge for providing our products. We believe they strike the correct balance under the fair value assessment.”

A Halifax spokesperson commented: “As part of our Consumer Duty commitments, we have analysed customer fees within the mortgage chain and have introduced a policy that outlines the maximum brokers can charge for providing our products. We believe they strike the correct balance under the fair value assessment.”