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What a directly authorised mortgage broker pays the FCA in 2026/27: the £2,820 application fee, the £2,200 minimum annual fee and the levies, worked for three sizes of firm
A directly authorised mortgage broker pays £2,820 to apply and at least £2,200 a year to the FCA in 2026/27. The levies on top, worked for three firms.
A directly authorised mortgage broker pays the FCA £2,820 once to apply, then at least £2,200 a year in 2026/27. Three levies arrive on the same invoice, and for a firm earning £240,000 a year the whole bill on the FCA's own calculator is £3,526.29.
The application fee
The FCA sorts applications into ten pricing categories, from £280 to £225,170. Its fees page says most financial adviser, mortgage broker and general insurance intermediary applications fall into Category 4, which is £2,820. It is paid by card with the application and is not refundable.
The annual rates in the Handbook
| Line on the invoice | 2026/27 rate | Where it is set |
|---|---|---|
| Minimum fee (A.0) | £2,200 | FEES 4 Annex 2AR, Part 2 |
| Home finance mediation (A.18) | £11.564 per £1,000, or part, of annual income over £100,000 | FEES 4 Annex 2AR, Part 1 |
| Insurance distribution, which is where protection income sits (A.19) | £1.511 per £1,000 of annual income over £100,000 | FEES 4 Annex 2AR, Part 1 |
| Prudential fee (AP.0) | The A.18 and A.19 fees multiplied by 0.10094 | FEES 4 Annex 2AR, Part 2 |
| Ombudsman levy, home finance advisers and arrangers | Flat £95 | FEES 5 Annex 1R, block 16 |
| Ombudsman levy, general insurance distribution | £0.462 per £1,000 of annual income, minimum £100 | FEES 5 Annex 1R, block 17 |
| Money guidance levy | Minimum £10, plus £0.154 per £1,000 of mortgage income over £100,000 | FEES 7A Annex 1R |
| Compensation scheme (FSCS) levy | Set each year; the calculator shows it | FCA fee calculator |
One figure on the FCA's website is out of date. Its page "How we calculate annual fees", last updated on 24 September 2025, still says most firms pay a minimum fee of £2,000. The Handbook annex for 1 April 2026 to 31 March 2027 and the calculator both say £2,200. Budget on £2,200.
Three firms through the FCA's calculator
On 1 October 2026 we put three firms through the calculator on its "2026/27 Final Rates" setting. We ticked the home finance and insurance distribution blocks, and the calculator added the ombudsman and compensation blocks itself.
| Firm A | Firm B | Firm C | |
|---|---|---|---|
| Mortgage income | £80,000 | £180,000 | £350,000 |
| Protection income | £15,000 | £60,000 | £90,000 |
| FCA fee | £2,200.00 | £3,027.00 | £4,784.38 |
| Ombudsman levy | £195.00 | £195.00 | £195.00 |
| Guidance levy | £10.00 | £22.32 | £48.50 |
| FSCS levy | £135.43 | £281.97 | £537.54 |
| Total for the year | £2,540.43 | £3,526.29 | £5,565.42 |
| Share of income | 2.7% | 1.5% | 1.3% |
Firm B's bill, line by line:
- Minimum fee: £2,200.
- Mortgage income is £80,000 over the £100,000 threshold, so 80 × £11.564 = £925.12. The calculator then takes off 20.7% under the label "Deduction for penalties received", which leaves 79.3% of it: £733.62.
- Protection income of £60,000 is under its £100,000 threshold: £0.
- Prudential fee: £925.12 × 0.10094 = £93.38.
- FCA fee: £2,200 + £733.62 + £93.38 = £3,027.00.
- Ombudsman levy: £95 + £100 = £195.
- Guidance levy: £10 + (80 × £0.154 = £12.32) = £22.32.
- FSCS levy: £281.97, of which £236.49 is the home finance class, about £1.31 per £1,000 of mortgage income.
- Total: £3,027.00 + £195.00 + £22.32 + £281.97 = £3,526.29.
The smallest firm pays the largest share. Firm A's income never reaches a threshold, so its FCA fee is the minimum alone, and the bill is 2.7% of what it earns.
The first year, and the dates that cost money
The FCA says a newly authorised firm pays "a proportion of the fee (based on the number of months remaining in the fee year)". The fee year runs from 1 April to 31 March. For Firm A authorised in October, the calculator gave an FCA fee of £1,100, half the minimum. Added to the application fee, that is £3,920 to the FCA before the levies.
| Date | What happens | Rule |
|---|---|---|
| 1 August, or 30 days after the invoice date if later | A firm whose fee last year was under £50,000 must have paid in full | FEES 4.3.6R |
| The day after the due date | A £250 administrative fee, plus interest at 5% a year over Bank Rate on the unpaid part | FEES 2.2.1R |
| 31 March | An application to cancel or reduce permissions must have reached the FCA, or the next year's fees are invoiced and are not refunded | FCA, How we calculate annual fees |
For the 2027/28 fee year that last date is Wednesday 31 March 2027.
What this page does not price
- Professional indemnity insurance. The premium is a market price and no regulator publishes it. The minimum cover is in MIPRU 3.2.
- The appointed representative route. A network pays the FCA and charges its members its own fees. We did not read any network's price list, so there is no comparison here.
- Ombudsman case fees. The Financial Ombudsman Service's page gives a maximum case fee of £680 and an allowance of £2,000 a year, and says most businesses pay none. Our guide to how long a firm has to answer a complaint covers what happens before a case gets that far.
Check your own figure
- Open the FCA fee calculator and pick "2026/27 Final Rates".
- Tick A018, and A019 if you sell protection.
- Enter the annual income you reported as tariff data, not this year's forecast.
- Compare each line with your invoice.
The complaints return is another FCA date in a broker's year, and its timetable changes for every firm at the end of 2026: see the complaints return from 31 December 2026. Mortgage advice records have their own retention period in how long to keep client files.
If a tool prepares your fee or tariff figures, the adviser, and compliance where the firm's procedures require it, reviews and signs anything it drafts. This page is general information, not regulatory or financial advice.
Short answers from this page
How much does it cost to become a directly authorised mortgage broker with the FCA?
The FCA's application fee for most mortgage brokers is Category 4, which is £2,820 in 2026/27, paid once and not refundable. After that the firm pays an annual fee with a minimum of £2,200. A firm authorised in October pays about half the annual fee for its first part-year: the FCA's calculator gave £1,100, so £3,920 to the FCA before levies.
Source: FCA, Authorisation and registration application fees; FCA Handbook FEES 4 Annex 2AR; FCA fee calculator, read 1 October 2026
What does a mortgage broker earning £180,000 from mortgages and £60,000 from protection pay the FCA a year?
On 1 October 2026 the FCA's fee calculator, on 2026/27 final rates, gave £3,526.29 for the year. That is an FCA fee of £3,027.00 (the £2,200 minimum, £733.62 on mortgage income over £100,000 and a £93.38 prudential fee), £195 for the ombudsman levy, £22.32 for the guidance levy and £281.97 for the FSCS. It is about 1.5% of the firm's income.
Source: FCA fee calculator, 2026/27 Final Rates; FCA Handbook FEES 4 Annex 2AR and FEES 5 Annex 1R, read 1 October 2026
Every short answer for financial advisers and mortgage brokers
Where this comes from: FCA, Authorisation and registration application fees (last updated 13 July 2026); FCA Handbook FEES 4 Annex 2AR, FEES 5 Annex 1R and FEES 7A Annex 1R for 2026/27, FEES 4.3.6R and FEES 2.2.1R; FCA fee calculator, 2026/27 Final Rates; FCA, How we calculate annual fees (last updated 24 September 2025); Financial Ombudsman Service, case fees; each read in a browser on 1 October 2026
AEO Lookup editorial team
We write practical guides for people who run small UK firms, and we check every fact against its source on the date shown. Read how we review, or tell us if something has changed.
