Buying & selling
Mortgage broker fees in the UK (2026): what brokers charge, and when it's worth paying
Some brokers charge you nothing, some charge a few hundred pounds and some charge a percentage of the loan — and all three can be the right choice. Here is what mortgage brokers cost, how they are actually paid, and how to tell which you need.
The short answer
| How the broker charges | What you pay (2026) | Typical for |
|---|---|---|
| Fee-free — paid by the lender | £0 | Most straightforward residential mortgages and remortgages |
| Fixed fee | £295–£995 | Complex cases, specialist brokers, some independent firms |
| Percentage of the loan | 0.3%–1% | Specialist lending, large loans, buy-to-let and limited-company landlords |
| A combination | A smaller fee plus the lender's commission | Some firms charge on completion only, or refund the fee against commission |
A fee-free broker is not working for free. Lenders pay brokers a commission — a procuration fee — when a mortgage completes, typically a fraction of a percent of the loan. Brokers who charge you a fee as well as receiving that commission have to tell you so, and the fee has to be disclosed before you commit. The rules are the FCA's, and the disclosure is the first thing to ask for.
When a fee-charging broker is worth it
- Self-employed, contractor or limited-company director income. Which lenders read which accounts, and how, is specialist knowledge that saves an application from failing.
- Adverse credit. Missed payments, defaults or a CCJ narrow the lenders who will consider you; knowing which ones will is the whole value.
- Buy-to-let, especially through a limited company or with a portfolio. Stress tests, rental cover ratios and lender appetite change constantly.
- Large or unusual loans — high loan-to-value, high loan-to-income, unusual property, or a purchase at auction with a deadline.
- Speed. A broker who lives on the phone to lenders can get an agreement in principle and an offer through faster than you can from the outside.
For a straightforward employed applicant with a clean record buying an ordinary house, a fee-free broker searching across lenders will usually do the job well. Paying a fee buys you specialism, not a better broker in general.
The questions to ask before you instruct
- How are you paid? Fee, commission, or both — and how much is each?
- When is the fee payable? On application, on offer, or on completion — and is it refunded if the mortgage does not complete?
- Are you whole-of-market, or do you work from a panel? Both are legitimate; you want to know which.
- Can I see your FCA registration? Anyone advising on mortgages must be authorised, and the register is public.
- Will you also compare my current lender's product transfer? On a remortgage that is sometimes the best deal and involves no new affordability check.
- What happens if I go direct to a lender you recommended? Some agreements charge a fee if you do.
Traps worth knowing
- A fee payable on application is money gone if the purchase falls through. Prefer a fee on offer or completion.
- "Free" from a broker tied to a small panel is not free if the panel does not hold the best rate for you. Ask how many lenders they can place with.
- Adding the fee to the mortgage is possible with some lenders. Convenient, but you pay interest on it for the whole term.
- A broker fee is separate from the lender's own arrangement fee, valuation fee and booking fee — budget for all of them.
Questions people ask
Do mortgage brokers charge a fee?
Some do and some do not. Many residential brokers are paid entirely by the lender's commission and charge you nothing; others charge a fixed fee, commonly £295–£995 in 2026, or a percentage of the loan, typically 0.3%–1%. All of them must disclose it before you commit.
When do I pay a mortgage broker fee?
It depends on the broker — on application, on the mortgage offer, or on completion. Ask, and prefer a fee that is only payable once the mortgage exists. A fee taken on application is lost if the purchase falls through.
Is a free mortgage broker worse than one who charges?
Not in general. For a straightforward case a fee-free broker searching across lenders will usually do well. A fee buys specialism — self-employed income, adverse credit, buy-to-let through a company, unusual loans — where the wrong lender means a failed application.
What is a procuration fee?
The commission a lender pays a broker when a mortgage completes, typically a fraction of a percent of the loan. It is how fee-free brokers earn, and brokers who charge you as well must tell you they are also receiving it.
Can the broker fee be added to the mortgage?
With some lenders, yes. It avoids paying up front but you pay interest on it for the term of the loan, which can turn a few hundred pounds into considerably more. Pay it up front if you can.
How do I check a mortgage broker is legitimate?
Search the firm on the FCA register, which is public and free. Anyone advising on mortgages in the UK must be authorised or be an appointed representative of a firm that is. No entry, no business.
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