The default of mortgage firm Southsea Mortgage and Investment Company has added £7.3m to the Financial Services Compensation Scheme’s annual levy.
In April, the FSCS announced an annual levy of £217m for 2011/12. However, since the announcement, Southsea Mortgage and Investment Company has been put into liquidation.
The FSCS says it compensated the majority of customers within two days.
The £7.3m compensation required for the default was not included in the original levy and so has now been added to the 2011/12 levy, bringing the annual levy to a total of £224.3m.