Halifax sets broker fee caps for mortgage services

Halifax, part of Lloyds Banking Group, has introduced a new policy capping the fees that brokers can charge for mortgage services, effective from 1st June.

This move follows the Financial Conduct Authority’s (FCA) implementation of Consumer Duty, aimed at ensuring customers receive fair value in financial transactions.

Under the new policy, Halifax aims to balance customer interests and broker compensation by setting a maximum fee that brokers can charge when providing Halifax mortgage products.

The cap is set at 1% of the loan amount or £1,500, whichever is greater. For instance, a loan of £100k would have a maximum fee of £1,500, while a loan of £200k would carry a maximum fee of £2,000.