MMR to cost industry up to £170m a year

However, the FSA said that estimated rise in compliance costs will be "less significant" than the MMR's direct impact upon the amount of mortgage lending that can take place. In addition, the FSA admits the price of mortgages is likely to rise as compliance costs are passed on to borrowers, with its cost benefit analysis revealing that average ongoing costs of affordability requirements are estimated at £17 per mortgage alone. The FSA said: "Compliance costs arising from the MMR will to some extent be passed on to borrowers, leading to higher mortgage prices. If the MMR were to have a...