Most UK mortgage brokers charge between £300 and £600 as a flat fee, though some charge a percentage of the loan (around 0.3%–1%) and many are fee-free, earning commission from the lender instead. What you pay depends on the broker and how complex your case is.
The short answer
- Brokers charge either a client fee (commonly £300–£600 flat, or ~0.3%–1% of the loan) or nothing, taking lender commission instead.
- “Fee-free” isn’t automatically cheapest: a slightly worse rate can cost far more than a one-off fee.
- FCA-regulated brokers must disclose every fee and any commission in writing before you apply.
A mortgage broker, sometimes called a mortgage adviser or intermediary, gets paid in one of two ways, and often a mix of both. The first is a fee you pay directly, and the second is a procuration fee (commission) the lender pays the broker when your mortgage completes. Understanding which model your broker uses is the key to knowing what their service really costs you, because a headline “free” service is not always the cheapest once the mortgage rate itself is taken into account.
Where a broker does charge a client fee, the most common structure is a flat fee somewhere between £300 and £600, payable either on application, on completion, or split across both. A minority charge a percentage of the loan instead, usually in the region of 0.3% to 1%, which on a £250,000 mortgage could mean anywhere from £750 to £2,500. Percentage fees tend to appear on more complex cases such as adverse credit or non-standard property. If you’re mapping out your total buying costs, our guide to how to get a mortgage in the UK sets the broker fee alongside the other sums you’ll need.
How mortgage brokers typically charge (2026)
| Charging model | Typical cost | Best suited to |
|---|---|---|
| Fee-free (lender-paid) | £0 to you | Straightforward employed applicants |
| Flat client fee | £300–£600 | Most standard purchases and remortgages |
| Percentage of loan | ~0.3%–1% of the mortgage | Complex, adverse-credit or specialist cases |
| Hourly rate | £75–£200 per hour | One-off advice without arranging the loan |
Why “fee-free” isn’t always the cheapest
A fee-free broker is genuinely free to you at the point of use, they simply keep the lender’s procuration fee. That can be excellent value. But two cautions are worth holding in mind. First, a broker who relies solely on lender commission may work from a narrower panel of lenders rather than the whole market, so they might not surface the single best rate for your situation. Second, a slightly higher interest rate costs far more over a five-year fixed term than a one-off £500 fee ever would. The right question is never simply “is there a fee?” but “what is the total cost of this mortgage, fee included, over the period I’ll hold it?”
Every fee must be disclosed in writing
A broker regulated by the Financial Conduct Authority must give you a document setting out exactly what they charge, when it’s payable, and what commission they receive from the lender, before you apply. If a broker is vague about their fee, treat that as a warning sign.
What you’re paying for
A good broker earns their fee in ways that are easy to underestimate. They compare deals across many lenders, match you to those whose lending criteria you actually fit (which reduces the risk of a declined application denting your credit file), handle the paperwork, and chase the case through to completion. For anyone who is self-employed, buying with a small deposit, or juggling a tight chain, that legwork can be the difference between an offer and a dead end. Because they see hundreds of cases, they also know which lenders are realistic about, say, contract income or a new-build timescale.
It helps to know how the numbers scale. A procuration fee of around 0.35% on a £200,000 mortgage is roughly £700 paid to the broker by the lender, which is why so many can afford to charge you nothing directly. On a larger loan that lender commission alone comfortably covers the work, whereas on a small mortgage or a complex case a client fee bridges the gap. None of this changes the interest rate you’re offered, but it does explain why two equally capable brokers can present completely different fee structures for what looks like the same job.
There’s also value in the relationship over time. A broker you use to buy your first home is often the person you return to when your fixed rate ends and you need to remortgage, when you move up the ladder, or when your circumstances change. Because they already hold your history, each subsequent job is quicker and usually cheaper, and a good broker will flag when a better deal appears rather than leaving you to drift onto a lender’s expensive standard variable rate. Viewed across several deals, a single fee often looks less like a cost and more like an ongoing service that quietly saves money at every renewal.
It’s worth separating a mortgage broker from a wider financial adviser. A mortgage broker specialises in arranging the loan; a financial adviser looks at your whole picture. Vetted Wealth is a free concierge service that matches you with independently vetted, FCA-regulated advisers and brokers, including specialists across Devon and Cornwall, rather than an adviser itself. This is information, not personal advice, and mortgage borrowing is secured against your home, which may be repossessed if you don’t keep up repayments.
Before you commit, ask three plain questions: how are you paid, how many lenders do you compare, and what is the total cost of the recommended deal including any fee? A broker who answers all three clearly is one worth having. You can explore the fuller picture, including deposits and rates, through our mortgages hub or by reading about professional mortgage advice.
In summary
- Brokers charge either a client fee (commonly £300–£600 flat, or ~0.3%–1% of the loan) or nothing, taking lender commission instead.
- “Fee-free” isn’t automatically cheapest: a slightly worse rate can cost far more than a one-off fee.
- FCA-regulated brokers must disclose every fee and any commission in writing before you apply.
- Judge a broker on total cost, panel size and service, not just whether there’s a fee.
Sources and further reading
- Mortgages MoneyHelper
- Mortgage rules and guidance Financial Conduct Authority
Read the full guide
For the complete picture, see our in-depth guide: First-Time Buyer Mortgage Guide.
Speak to a vetted mortgage advice specialist
This is free information, not personal advice. When you’re ready, we’ll match you with an independently vetted, FCA-regulated specialist, free, and with no obligation.
