Mortgage brokers will only have to contribute £4m towards the Financial Services Compensation Scheme for the 2019/20 financial year because they will stop paying towards pensions and investment claims.
This year’s levy for mortgage claims will fall from £25m to £5m, though £1m of that will be paid by lenders.
The change follows lobbying from trade body the Association of Mortgage Intermediaries (AMI).
Robert Sinclair (pictured), chief executive of AMI, said: “This has been a two year journey to achieve a fairer outcome for all mortgage brokers and it will have a significant impact on this year’s fees.
“This was a significant win for AMI who were often the only entity arguing for these new and fairer class allocations and for the new 25% provider contributions.”
Most other areas of financial services will see levies increase. For example general insurance providers will see costs rise from £109m in 2018/2019 to £165m in 2019/20, and life insurers will have to contribute £25m, up from £6m.
Last year the FSCS only levied fees for a nine month period.
This is because, from this year for the first time, contributions are mirroring the financial year, from April to March.