How much do mortgage brokers charge in the UK?
It depends on the broker. Some charge nothing, some charge hundreds, some charge thousands. Here's how it actually works.
The three fee models
Every mortgage broker in the UK gets paid in one of three ways. Understanding this helps you know what you're paying for — and whether you need to pay anything at all.
Fee-free (commission only)
The broker is paid entirely by the lender. You pay nothing for the advice. This is how I work for standard cases.
Your cost: £0
Flat fee (plus commission)
The broker charges you a fixed amount — typically £300 to £1,000 — on top of the commission they receive from the lender.
Your cost: £300 – £1,000
Percentage fee (plus commission)
The broker charges a percentage of your mortgage amount — typically 0.3% to 1%. On a £250,000 mortgage, that's £750 to £2,500.
Your cost: £750 – £2,500 on a £250k mortgage
What about estate agent mortgage advisors?
When you buy through an estate agent, they'll almost always try to refer you to their in-house mortgage advisor. These advisors typically charge fees of £500 or more, and they often have a more limited panel of lenders.
You're under no obligation to use the estate agent's advisor. You're free to choose your own broker — and many people save money by doing so. The estate agent can't penalise you for using someone else.
How does broker commission work?
When any broker arranges a mortgage, the lender pays them a commission — called a procuration fee. This is standard across the industry and happens regardless of whether the broker also charges you a fee.
The commission doesn't affect the interest rate you're offered. The lender pays the same rate to you whether you came through a broker or walked into their branch directly. It's simply how lenders pay for the business that brokers bring them.
So why do some brokers charge fees?
Some brokers argue that charging a fee makes them more objective. Others simply want to earn more per case. There's no evidence that paying a fee gets you better advice — the FCA requires all brokers to recommend suitable products regardless of how they're paid.
My view? For the vast majority of people — first-time buyers and straightforward remortgages — there's no reason to pay a broker fee. The lender commission covers the work involved. I only charge a fee (£345) for cases that involve significantly more work, and I'll always tell you upfront.
| Broker Type | Typical Fee | Cost on £200k Mortgage |
|---|---|---|
| Fee-free broker | £0 | £0 |
| Flat fee broker | £300 – £1,000 | £300 – £1,000 |
| Percentage fee broker | 0.3% – 1% | £600 – £2,000 |
| Estate agent advisor | £500 – £1,000+ | £500 – £1,000+ |
All brokers also receive a commission from the lender (procuration fee). The fees above are what you pay on top of that.
Related questions
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