Last reviewed: June 2026
TL;DR- A mortgage broker (also called a mortgage adviser or intermediary) searches the mortgage market and recommends suitable products based on the borrower's circumstances.
- Whole-of-market brokers have access to products from across the market; tied advisers can only recommend products from a specific lender or panel.
- Brokers are remunerated by commission from the lender (typically 0.3-0.5% of the loan), a fee charged to the borrower, or both.
- FCA authorisation is required to give regulated mortgage advice - brokers must hold the appropriate FCA permissions and be on the FCA Register.
What a Mortgage Broker Does
A mortgage broker (regulated by the FCA as a mortgage intermediary) assesses the borrower's circumstances, identifies suitable mortgage products from across or part of the market, and makes a recommendation. A regulated broker must: assess the borrower's needs and circumstances; research suitable products; explain the recommended product clearly; and provide a Key Facts Illustration (KFI) or European Standardised Information Sheet (ESIS) setting out the product terms. The broker must act in the borrower's best interests and make a recommendation suitable for their circumstances - this is a higher standard than simply providing information.
Whole-of-Market vs Tied Advisers
The FCA requires brokers to disclose the scope of their market coverage:
- Whole-of-market: the broker searches products from all or nearly all lenders in the market, including products that may not be available direct from the lender. This gives the broadest possible access and is the type most borrowers seek.
- Multi-tied: the broker has access to products from a defined panel of lenders but not the whole market. May miss competitive products from lenders outside the panel.
- Tied (single lender): the broker can only recommend products from one specific lender - effectively the lender's own sales advisers. Cannot search the wider market.
Brokers must disclose their service type in writing before providing advice. A whole-of-market broker is generally preferable for most borrowers.
How Brokers Are Paid
Mortgage brokers are paid in one or a combination of three ways:
- Lender commission (procuration fee): most mortgage lenders pay a commission to the broker on completion of each mortgage, typically 0.3-0.5% of the loan amount. The borrower does not pay this directly - it is paid by the lender. The broker must disclose the commission amount.
- Broker fee: some brokers charge the borrower directly - either a fixed fee (£300-£1,500) or a percentage of the loan. Broker fees are payable in addition to or instead of lender commission. Some brokers charge a fee at application and additional fees at offer and completion.
- Fee-free brokerage: brokers who take lender commission only and charge the borrower nothing directly. Fee-free does not mean low-cost if the commission influences product recommendation.
FCA rules require full disclosure of all remuneration. Borrowers should ask any broker to confirm in writing exactly how they are paid and what the total charge will be before proceeding.
Checking a Broker Is FCA Authorised
All mortgage brokers must be FCA-authorised to provide regulated mortgage advice. The FCA Financial Services Register is publicly searchable and lists all authorised individuals and firms with their specific permissions. Borrowers should verify the broker's authorisation before proceeding. Some mortgage brokers operate as Appointed Representatives (AR) of a directly authorised firm - the AR's firm appears on the Register rather than the individual. This is legitimate but the authorising firm is responsible for the AR's conduct.
Frequently Asked Questions
Is using a mortgage broker always better than going direct to a lender?
For straightforward applications with a strong credit profile and a standard property, going direct to a well-known lender can work well - particularly for a product transfer at deal end. For first purchases, complex income, adverse credit, non-standard properties or any situation where the right lender is not obvious, a whole-of-market broker adds significant value through market knowledge, lender relationships and the ability to identify the most suitable product without multiple hard credit searches.
Can a mortgage broker guarantee I will get a mortgage?
No. A broker can significantly improve the likelihood of a successful application by identifying the right lender and presenting the application effectively, but the lending decision rests with the lender. Any broker who guarantees mortgage approval is making a claim they cannot support.
What qualifications should a mortgage broker have?
FCA authorisation to advise on regulated mortgage contracts requires the broker to hold a recognised qualification - typically the CeMAP (Certificate in Mortgage Advice and Practice) or equivalent. More specialist brokers may hold additional qualifications in equity release, commercial mortgages or protection. Qualifications can be verified through the FCA Register and through relevant professional bodies (the London Institute of Banking and Finance for CeMAP).
Should I use a local broker or an online broker?
Geography is less important than whole-of-market access, lender relationships and specialist expertise. Local brokers who operate face-to-face may suit borrowers who prefer personal meetings. Online brokers offer convenience and may have access to digital-first lenders not available through traditional channels. The key criteria are whole-of-market access, appropriate specialist experience for the borrower's circumstances, and transparent fee disclosure.
