How much does a mortgage broker cost?
The short answer
Many UK mortgage brokers charge you nothing: they're paid commission by the lender, typically around 0.35% to 0.4% of the loan. Fee-charging brokers add a fixed fee - commonly £300 to £600 - or occasionally up to 1% of the loan for complex cases. Every broker must tell you exactly how they're paid before you commit. Neither model is automatically better.
How the money works
Lenders pay a procuration fee to brokers for completed mortgages - commission, roughly 0.35% to 0.4% of the loan, on virtually every deal whether or not the broker also charges you. So the real models are:
| Model | You pay | Common with |
|---|---|---|
| Fee-free | £0 - commission only | High-street and online brokers on straightforward cases |
| Fixed fee | £300 - £600, often on offer or completion | Independent and whole-of-market brokers |
| Percentage | 0.3% - 1% of the loan | Complex cases: adverse credit, large or unusual loans |
A £500 fee on a £200,000 mortgage is 0.25% - noise against the rate. The mortgage calculator makes the comparison concrete: each 1% of rate on that loan over 25 years moves the monthly payment about £110 to £140. A broker whose access or casework lands you one rate band lower repays their fee inside months.
Judging whether a fee is worth it
The questions that actually separate brokers: whole-of-market or panel (the difference matters)? When is the fee due - advice stage, offer or completion? Refundable if no offer materialises? What happens at remortgage time - fresh fee or ongoing service? And for anything non-standard - self-employment, credit history, unusual property - which lenders have they placed cases like yours with recently? Specialist access is precisely what a fee legitimately buys.
Speak to a broker who shows their workings
Verified whole-of-market brokers, clear about how they're paid before you commit anything. One enquiry, free, no obligation.
Compare mortgage brokersCommon questions
Is a fee-free broker really free?
Free to you; the lender pays them. The theoretical worry is commission bias, but procuration fees are broadly similar across lenders and brokers must recommend suitability under FCA rules. The practical check: ask why this deal beat the runners-up.
When would I sensibly pay a percentage fee?
Almost only when placement is genuinely hard - recent defaults, complex self-employment, unusual property - and specialist lender access is what you're buying. For a clean case with straightforward income, a percentage fee has little justifying it.
Do brokers charge for remortgages?
The same models apply, and many charge less or nothing for returning clients. Diarise your fix's end date and start conversations three to six months out - lapsing onto a standard variable rate costs more per month than most broker fees cost once.
Can I check a broker is legitimate?
Mortgage advice is FCA-regulated: look the firm up on the Financial Services Register. Homeply verifies partners before they receive enquiries, and the register is the two-minute independent check.
Sources and further reading