Most mortgage brokers in the UK do not charge you a fee at all, because they are paid a commission by the lender instead. Where a broker does charge a client fee, it is typically a flat sum agreed upfront before any work begins, rather than a percentage of your loan. The right question is not "what's the average cost" but "what does this particular broker charge me, and what am I getting for it."
How mortgage brokers are actually paid
There are two separate income streams that can fund a broker's business, and understanding both is the key to understanding cost.
1. Commission from the lender (procuration fee)
When a broker places a mortgage with a lender, that lender pays the broker a commission, often called a procuration fee. This is standard across the industry and is built into the lender's cost of doing business, not added on top of your mortgage rate. As a very general illustrative example, procuration fees tend to sit somewhere in the region of 0.3% to 0.4% of the loan amount, though the exact figure varies by lender and is not something a client typically needs to negotiate or track, because it does not come out of your pocket.
This is why many brokers, including advisers at The Mortgage Experts, are able to offer advice with no client fee at all on many cases. The lender is footing the bill for the broker's time and expertise.
2. A fee charged directly to you, the client
Some brokers, or some case types, involve a separate fee paid by the client. This might apply because:
- The case is unusually complex (adverse credit, self-employed income with multiple income streams, a large buy-to-let portfolio, or a specialist product)
- The broker operates a fee-charging model as standard, regardless of case complexity
- The mortgage amount is small enough that commission alone would not reasonably cover the adviser's time
Where a fee applies, it is usually a flat amount rather than a percentage, and it should always be disclosed to you clearly and in writing before you commit to using that broker. If a broker cannot tell you upfront, in plain terms, exactly what you will pay and when, that is a fair reason to ask more questions or look elsewhere.
What should you actually expect to pay?
Because pricing structures vary so much by firm, giving you one number would be misleading. Instead, here is what to ask any broker you are considering, including us:
- Do you charge a client fee, and if so, how much, and when is it due? Some brokers charge on application, others on completion. This matters for your cash flow.
- Is the fee refundable if my mortgage does not complete? This is a genuinely important question that many people forget to ask.
- Does the fee change if my case is more complex than expected? A good broker will tell you this at the outset rather than adding surprises later.
- Are there any other costs I should know about? This is different from broker fees specifically, but a thorough adviser will also flag likely third-party costs such as valuation fees, lender arrangement fees, and legal costs, so you can see the whole picture rather than just the advice fee.
At The Mortgage Experts, our approach is to be upfront about any fee before you engage us, so there are no surprises. Many of our clients pay no direct fee at all, because we are remunerated by the lender in the normal way.
Free broker versus fee-charging broker: is one better?
Not automatically, and this is worth being honest about. A free-to-client broker is not doing anything for less, they are simply being paid a different way, by the lender rather than by you. Equally, a fee-charging broker is not necessarily providing a superior service just because they charge more. What actually matters is:
- Whether the broker has access to the whole market, or only a limited panel of lenders (you can see the full range of mortgage services we offer)
- Whether the broker is qualified and regulated (all UK mortgage brokers should be authorised by the Financial Conduct Authority, and you can check this on the FCA register)
- How clearly they communicate what you're paying for and why
- Whether they are available to support you through the full process, not just at the application stage, but when things get complicated with underwriting, valuations, or a chain
A broker fee, where one exists, is not automatically a red flag. What matters is transparency about it from the very first conversation.
Why using a broker is usually still worth it, fee or no fee
Some people wonder whether it's cheaper to go direct to a bank and cut out the broker entirely. In most cases, this does not save you money, and can cost you more in missed options. Going direct means you only see that one lender's products. A broker, particularly one with access to the whole of the market, can compare a much wider range of deals, including some that are only available through intermediaries and not directly to the public.
There is also the question of what happens if your circumstances are not entirely straightforward, such as being self-employed, having a small deposit, or having a less than perfect credit history. A broker who understands lender criteria in detail can often identify a suitable lender faster than you would find by searching directly, which can save you time, wasted applications, and unnecessary credit searches. You can get a sense of what's affordable before you speak to anyone using our mortgage calculators.
What this means for you
If cost is a concern, the most useful thing you can do is ask any broker you're considering to confirm, in writing, whether you'll pay anything directly, and if so, exactly how much and when. A broker who answers this plainly and without hedging is generally a good sign. One who is vague about it is worth being cautious of.
Frequently asked questions
Do all mortgage brokers charge a fee? No. Many UK brokers are paid entirely through lender commission and charge clients nothing directly. Whether a fee applies depends on the individual firm and sometimes on the complexity of your case.
Is it cheaper to get a mortgage without a broker? Not usually. Going direct to a single lender limits you to their products alone, and a broker's lender commission does not add to your interest rate. In most cases, using a broker costs you the same or less than going direct, while giving you access to more options.
Can a broker's fee be negotiated? Sometimes, particularly for straightforward cases. It's reasonable to ask, and a transparent broker will explain clearly what is and is not flexible.
If you'd like a clear, no-obligation answer on what advice would cost in your specific circumstances, get in touch with The Mortgage Experts and we'll tell you plainly, before you commit to anything.