How much does a mortgage broker cost? (and is one worth it)
Free brokers, fee-charging brokers, and everything between. What brokers actually charge in 2026, what you get for the money, and when to skip the broker entirely.
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A mortgage broker can cost you nothing, £300, or £1,000+ - and the price isn’t a reliable guide to the value. The real questions are how they’re paid, whether they see the whole market, and whether their access saves you more than their fee. Mortgages are regulated by the Financial Conduct Authority; this guide is general information, not financial advice, and a broker or adviser can confirm what applies to your circumstances.
The three ways brokers get paid
| Model | You pay | How the broker earns |
|---|---|---|
| Fee-free broker | £0 | Lender commission (usually 0.3–0.5% of the loan) |
| Fee-charging broker | £300 – £1,000 | Your fee, sometimes plus commission - some refund the fee at completion |
| Independent fee broker | £500+ | Your fee only - no lender commission, which removes bias |
A whole-of-market broker can access most or all lenders; a restricted broker only sees a panel. Neither is automatically better - a good restricted broker with a strong panel can still beat a lazy whole-of-market one. Always ask: “How many lenders do you compare, and how are you paid for recommending one?”
Is a broker worth the fee?
The maths is simple: if a broker finds you a rate 0.1% lower than you’d find yourself, on a £250,000 mortgage that’s £250 a year - which beats most broker fees within 12–24 months. Brokers earn their keep most when your case is unusual: self-employed, a credit blip, a large loan, an auction purchase, or a complex income picture.
The questions to ask before paying
- “Are you whole-of-market or restricted?” - and how many lenders do you actually compare?
- “What’s your fee, when do I pay it, and is it refundable?” - some waive it if you complete through them
- “Do you take commission from lenders too?” - fee plus commission is the most conflicted model
- “What happens if my application is declined?” - the best brokers know which lender will take a borderline case
- “Are you regulated?” - check the FCA register; never use an unregulated introducer
A good broker is like a good conveyancer: the fee is annoying, the protection is worth it, and the cheapest option is rarely the cheapest overall. Get the fee structure in writing before they run your credit file.
Frequently asked questions
Frequently asked questions
How much does a mortgage broker cost?
A mortgage broker costs between £300 and £1,000 if they charge a fee, or nothing at all if they are fee-free. Fee-free brokers earn via lender commission (around 0.3% to 0.5% of the loan); independent fee-only brokers charge £500 or more and take no commission. Some fee-charging brokers refund the fee if you complete through them - always confirm the fee, when it is payable, and whether it is refundable in writing before they run a credit check.
Are mortgage brokers free?
Some mortgage brokers are genuinely free to the borrower - they are paid entirely by lender commission, usually 0.3% to 0.5% of the loan. Fee-free brokers still owe you the same duty of care under FCA regulation, and many whole-of-market brokers operate on this model. The catch is that commission can bias which lender they recommend, so ask whether commission varies by lender and whether they compare the whole market.
Do mortgage brokers charge a fee?
Not always. Brokers split into three models: fee-free (you pay nothing, they take lender commission), fee-charging (£300 to £1,000, sometimes plus commission), and independent fee-only (£500 or more with no commission). A fee does not guarantee better advice - a fee-free whole-of-market broker can outperform a fee-charging restricted one. Get the fee, when it is payable, and whether it is refundable in writing before they run a credit check.
How do mortgage brokers get paid?
Mortgage brokers get paid in one of three ways: lender commission (typically 0.3% to 0.5% of the loan, paid by the lender), a client fee (£300 to £1,000 paid by you), or a combination of both. Independent fee-only brokers take no commission at all, which removes the bias toward higher-commission lenders. Fee-free brokers rely entirely on commission, so always ask how they are paid and whether commission varies by lender.
How to find a mortgage broker
Start by deciding whether you need a whole-of-market broker (who can access most lenders) or are happy with a restricted panel. Check the FCA register to confirm they are regulated, ask how they are paid, and get the fee structure in writing. MoneyHelper lists regulated brokers and comparison tools can pre-filter by fee model. For unusual cases - self-employed, a credit blip, a large loan, or a complex income - a specialist broker is usually worth the fee.
Source: MoneyHelper - using a mortgage broker — Fees and regulation guidance checked August 2026
How much can I borrow?Understand your affordability before you talk to anyone.Mortgage affordability calculatorGet a realistic budget before comparing brokers.
Sources
- MoneyHelper - using a mortgage broker - Fees and regulation guidance checked August 2026
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