Buried in the cost benefit analysis section of the latest FSA consultation paper on MMR, CP 10/28, is quite a chilling figure - the estimate of the cost to the industry of getting all "non-advised" sellers qualified to CeMap standard.
Earlier in the paper, the FSA estimates that currently around 30% of sales in the mortgage market are information only and that, of these, the large majority are done by banks and other lenders rather than intermediaries. Intermediaries, it seems, provided advice on 92% of mortgages they sold (although I'd say this is on the low side) whereas lenders on average provided advice on only 36% of the mortgages they sold. The FSA has therefore estimated that there are between 3,000 and 5,000 non-advised sellers in the industry. On the assumption that these sellers are not ...
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