Is a mortgage broker free?
The short answer: some are, some aren't. Here's how to tell the difference — and why you probably don't need to pay.
The honest answer
Some mortgage brokers are free to use. Others charge fees. It depends on the broker's business model, not the quality of their advice.
I offer fee-free advice for standard cases — which covers the majority of first-time buyers and people remortgaging. The lender pays me a commission for arranging the mortgage, so you don't need to pay anything on top.
How can a broker afford to be free?
Every time a broker arranges a mortgage, the lender pays them a commission — called a procuration fee. This is standard across the entire industry. It happens whether the broker charges you a fee or not.
Fee-free brokers simply choose not to charge you an additional fee on top of this commission. Brokers who charge fees are earning the commission and charging you. The lender pays the same either way.
When might you have to pay?
There are situations where a fee is reasonable:
- Complex cases — unusual income structures, adverse credit history, or specialist property types that require significantly more work
- Equity release — specialist advice that involves additional qualifications and longer consultations
- Commercial mortgages — business lending that sits outside standard residential advice
For my clients, I charge a fixed fee of £345 only when a case involves significantly more work than standard. I'll always tell you upfront before we start — no surprises.
What to watch out for
A few things to be aware of when choosing a broker:
Estate agent referrals
Estate agents' in-house advisors often charge £500+ and may have a limited panel. You're not obligated to use them.
Hidden fees
Some brokers advertise as 'free initial consultation' but charge on application or completion. Ask about the full fee structure upfront.
Percentage-based fees
A 1% fee on a £250,000 mortgage is £2,500. That's a lot of money for work that a fee-free broker does for nothing.
Non-refundable fees
If you pay upfront and the mortgage falls through, some brokers keep the fee. Check the terms.
The bottom line
Fee structures vary between brokers. For standard cases, Lynton Mortgages offers fee-free advice and explains any fee arrangement before work starts. What matters is understanding the service, the lender panel and whether the recommendation is suitable for your circumstances.
Related questions
Your home may be repossessed if you do not keep up repayments on your mortgage.
