Key Facts
- Primary keyword: mortgage broker - 1,900 monthly searches
- Independent editorial guide - no affiliate links, no commission
- Sources: FCA, gov.uk, HMRC, Money and Pensions Service
- Last reviewed June 2026
What Does a Mortgage Broker Do?
A mortgage broker, also called a mortgage adviser, assesses a borrower's financial circumstances and searches the mortgage market to identify the most suitable product and lender for their needs. A mortgage broker handles the application process, liaises with the lender on the borrower's behalf, and manages the mortgage through to formal offer.
A mortgage broker saves borrowers time by comparing products across multiple lenders simultaneously and applying expert knowledge of which lenders are most likely to approve a specific application. This is particularly valuable for borrowers with complex income - self-employed, contractors, multiple income sources - or adverse credit history where lender criteria vary significantly.
Mortgage brokers are regulated by the FCA and must be authorised to give mortgage advice. All mortgage brokers are required to provide a personalised recommendation explaining why a specific product is suitable for the borrower's circumstances, in writing, before the application proceeds.
Types of Mortgage Broker
A tied mortgage broker is affiliated with a single lender and can only recommend that lender's products. Bank and building society mortgage advisers are typically tied brokers. While tied brokers provide free advice, they cannot access the wider market and may not identify the most competitive product available.
A multi-tied mortgage broker is affiliated with a panel of lenders - typically five to twenty - and can compare products across their panel. This provides more choice than a tied broker but less than a whole-of-market broker.
A whole-of-market mortgage broker has access to the entire mortgage market, including products from lenders not accessible to tied brokers and exclusive deals available only through the broker channel. A whole-of-market mortgage broker is generally the best option for borrowers who want to ensure they are accessing the full range of available products.
How Much Does a Mortgage Broker Cost?
Mortgage brokers are remunerated in three ways: fee-free (paid by lender commission only), flat fee, or percentage fee. Fee-free mortgage brokers charge the borrower nothing but receive a procuration fee from the lender when the mortgage completes. This fee is disclosed in the mortgage illustration and is typically 0.3 to 0.5 percent of the loan amount.
Flat fee mortgage brokers charge a fixed amount, typically 300 to 500 pounds for a straightforward residential mortgage. Complex cases - self-employed, adverse credit, unusual property - may attract fees of 500 to 1,500 pounds. The flat fee is paid regardless of whether the mortgage completes in some cases, or on completion in others.
Percentage fee mortgage brokers charge a percentage of the loan amount, typically 0.3 to 1 percent. On a 300,000 pound mortgage, a 0.5 percent fee is 1,500 pounds. Percentage fees are more common in specialist or complex mortgage markets. The FCA requires all broker fees to be disclosed clearly before advice is provided.
How to Find a Good Mortgage Broker
Finding a good mortgage broker starts with confirming FCA authorisation. The FCA Financial Services Register at register.fca.org.uk lists all authorised mortgage advisers. Any broker not on the register is not legally permitted to give mortgage advice.
A whole-of-market mortgage broker is preferable for most borrowers. Checking whether a broker is truly whole-of-market - not just claiming to be - can be done by asking which lenders and products they have access to and how many they compare. A genuine whole-of-market mortgage broker should be able to name dozens of lenders.
Personal recommendations from people who have recently used a mortgage broker in similar circumstances are reliable. Online review platforms including Trustpilot and Google Reviews provide additional evidence of a broker's track record. The quality of a broker's explanation of the recommendation - how clearly they explain why a specific product suits the borrower's circumstances - is also a useful indicator of expertise.
Online Mortgage Brokers vs In-Person Advice
Online mortgage brokers have expanded significantly in recent years, offering full mortgage advice through digital platforms. Services including Habito, Trussle and others provide online whole-of-market advice, often for no fee. Online brokers are efficient for straightforward applications with standard employed income and clean credit history.
In-person or telephone-based mortgage brokers are better suited to complex cases where the nuance of the borrower's circumstances benefits from detailed discussion. Self-employed borrowers, those with adverse credit, or those purchasing unusual properties often find that a conversation with an experienced specialist broker identifies solutions that an automated online process might miss.
The choice between online and in-person mortgage brokerage ultimately comes down to the complexity of the case. For a straightforward application, an online whole-of-market mortgage broker provides efficient access to the full market at no cost. For complex income or adverse credit, the investment in a specialist in-person mortgage broker typically pays for itself in the improved outcome.
What to Prepare Before Meeting a Mortgage Broker
Preparing documentation in advance of a mortgage broker appointment saves time and enables the broker to provide an accurate assessment on the first meeting. Standard documents required include: the last three months of payslips for employed borrowers; two to three years of SA302 tax calculations for self-employed borrowers; three months of bank statements for all current accounts; the most recent P60; and proof of address.
Borrowers should also have a clear picture of their monthly outgoings, including all committed expenditure such as childcare, school fees, and regular saving commitments. Lenders assess affordability against net income minus committed outgoings, and a mortgage broker needs an accurate picture of the full financial position.
Checking the credit report from all three UK credit reference agencies - Experian, Equifax, and TransUnion - before the appointment allows any errors or surprises to be identified in advance. A mortgage broker who is aware of any adverse credit history from the outset can factor this into the lender selection rather than discovering it during the application process.
Disclaimer: This guide is for informational purposes only and does not constitute financial advice. Products, eligibility criteria and regulations change frequently. Consult an FCA-authorised adviser before making any decision. Kael Tripton Ltd is not authorised or regulated by the Financial Conduct Authority.
Frequently Asked Questions
What is the difference between a mortgage broker and a mortgage adviser?
The terms are used interchangeably. Both refer to a qualified professional who assesses borrower circumstances and recommends suitable mortgage products. The FCA regulates both under the same mortgage advice regime.
Is it worth using a mortgage broker?
For most borrowers, yes. A whole-of-market broker compares more products than the borrower could access directly, saves significant research time, and often identifies better rates or more suitable products than available through direct application. The service is often free as brokers receive lender commission.
Can a mortgage broker get me a better rate?
Mortgage brokers have access to exclusive rates not available directly to the public, and can identify the most competitive rates across the full market. For straightforward cases, the rate improvement may be modest. For complex income or adverse credit, the broker's lender knowledge can make the difference between approval and decline.
How long does a mortgage broker take?
An initial mortgage broker consultation typically takes one to two hours. The broker then researches suitable products and returns with a recommendation. For a straightforward employed application, from first appointment to mortgage offer can take two to four weeks. Complex cases take longer.
Do I have to use a mortgage broker?
No. Borrowers can apply directly to lenders without using a mortgage broker. However, direct application limits the comparison to one lender at a time and does not benefit from the broker's market knowledge or exclusive rate access. For first time buyers and complex cases, broker advice is strongly recommended.
Sources
Last reviewed June 2026 · Kael Tripton Editorial
