TL;DR: UK mortgage broker fees in 2026 typically follow one of three structures: a flat fee per case (commonly 300 to 1,000 pounds for standard residential cases, higher for specialist work), a percentage of the loan amount (often around 0.4 percent with a cap), or no client fee at all (the broker relies on the procuration fee paid by the lender). The fee structure, when it is payable, and whether any part is refundable must be disclosed in writing to the borrower at the outset under the FCA's Mortgage Conduct of Business Sourcebook (MCOB) rules. Brokers also receive a procuration fee from the lender on completion, typically 0.3 to 0.45 percent of the loan amount on mainstream residential cases and higher on buy-to-let and specialist cases. The borrower should always ask for both figures up front.
Last reviewed May 2026
UK mortgage brokers are paid by some combination of a fee charged to the borrower and a commission paid by the lender. The FCA regulates the disclosure and conduct of these fees under the Mortgage Conduct of Business Sourcebook (MCOB) and the Consumer Duty rules. The structure of mortgage broker fees is set by the broker, subject to disclosure rules and the requirement to act in the borrower's best interests.
This guide explains exactly what UK mortgage broker fees look like in 2026, the typical fee ranges, how procuration fees work alongside client fees, the FCA disclosure requirements, when fees are payable and what is refundable, and how to compare broker quotes that look different at first glance.
The three common fee structures
The flat fee structure charges a fixed amount per case, regardless of loan size. Typical flat fees on a standard residential case run from 300 pounds at the low end to 1,000 pounds at the higher end. Specialist cases (adverse credit, complex income, buy-to-let portfolio, large loans, expat) often carry higher flat fees, sometimes 1,500 to 3,000 pounds. The flat fee is the simplest to understand and the easiest to compare.
The percentage fee structure charges a fraction of the loan amount, often with a minimum and a cap. A common structure is 0.4 percent of the loan with a minimum of 500 pounds and a cap of around 2,000 pounds. Percentage fees scale with the loan size, which can produce higher fees on large loans and lower fees on small ones. The cap is significant on larger loans, where it limits the fee to a sensible figure.
The no-client-fee structure charges nothing to the borrower directly. The broker relies on the procuration fee from the lender as the sole income on the case. This model works in segments where the average loan size is large enough that the procuration fee alone covers the cost of advising and processing the case. Some brokers offer a no-fee proposition as a marketing differentiator, others apply it only on certain cases.
How procuration fees fit into the picture
The procuration fee is paid by the mortgage lender to the broker (or to the broker's principal firm if the broker is an appointed representative) when the mortgage completes. Typical procuration fees on mainstream residential mortgages are 0.3 to 0.45 percent of the loan amount. Buy-to-let, specialist and adverse-credit lenders typically pay higher procuration fees, often 0.5 to 0.75 percent.
The procuration fee is built into the lender's product pricing. The borrower does not see the procuration fee as a separate charge; it is part of the lender's overall acquisition cost reflected in the rate. The fee must be disclosed in the European Standardised Information Sheet (ESIS) or the equivalent disclosure document attached to the mortgage offer.
The combination of client fee and procuration fee makes up the broker's gross income on the case. A broker charging a 500 pound client fee and earning a 0.35 percent procuration fee on a 250,000 pound mortgage receives 500 + 875 = 1,375 pounds gross. In an appointed representative arrangement, the principal firm typically takes a percentage of this gross income (often 15 to 40 percent), and the broker's net income is meaningfully smaller.
FCA disclosure rules under MCOB
The FCA's Mortgage Conduct of Business Sourcebook (MCOB) requires the broker to disclose, in writing and before any chargeable advice is given, the broker's status (independent, restricted, tied), the range of lenders the broker covers, the fees the broker charges to the borrower, the procuration fees the broker will receive from lenders, when fees are payable, and what is refundable if the mortgage does not proceed.
The disclosure normally appears in an Initial Disclosure Document (IDD), sometimes called a Fee Agreement or similar. The borrower is asked to confirm receipt and understanding of the disclosure before the broker starts substantive work on the case. A copy of the document should be retained by the borrower for reference.
The Consumer Duty rules introduced in 2023 add a higher-level requirement that the broker must act in the borrower's best interests, deliver fair value, and avoid foreseeable harm. The FCA expects brokers to be able to evidence that their fee structures represent fair value for the services delivered, and that the product recommended is suitable for the borrower's needs rather than chosen for the broker's procuration fee benefit.
When fees are payable and what is refundable
Brokers typically charge fees in one of three timings: a small fee on engagement plus the balance on completion, the full fee on application (when the mortgage application is submitted to the lender), or the full fee on completion (when the mortgage funds are released). The timing must be stated in the disclosure document.
Fees paid on completion are not at risk if the case does not complete. If the mortgage application fails, the borrower owes nothing. Fees paid on application are sometimes partially or fully retained by the broker even if the case fails, depending on the disclosure document's terms. The retention should reflect the work the broker has done on the case.
The Financial Ombudsman Service (FOS) handles complaints where the borrower considers the broker has unfairly retained a fee. The FOS examines the disclosure document, the work done by the broker, the reason the case did not complete, and whether the retention is fair. The FOS can order partial or full refunds where the retention is considered unfair.
How to compare broker quotes
The first comparison is the total cost of getting the mortgage in place: broker client fee + lender arrangement fees + valuation fee + legal fees. Two brokers might quote 0 pounds and 1,500 pounds in client fees respectively, but the broker with the higher fee might be recommending a product with a lower interest rate or smaller lender arrangement fee, producing a lower total cost over the fixed term.
The second comparison is the total cost over the fixed term of the mortgage. A 2-year fixed at a slightly higher rate with no client fee can cost more (or less) than a 2-year fixed at a slightly lower rate with a 1,000 pound broker fee. The arithmetic depends on the loan size and the rate differential. A good broker should be able to produce a "total cost over the fixed period" comparison covering both scenarios.
The third comparison is service and case fit. A broker who specialises in the borrower's specific situation (first-time buyer, adverse credit, buy-to-let portfolio, complex income, age over 60) is often worth a higher fee than a generalist whose strongest lenders are not the right ones for the case. Specialist case knowledge can produce a better product fit and a smoother application, both of which have real value.
Whole-of-market vs limited panel brokers
A "whole of market" broker covers substantially all UK mortgage lenders that distribute through intermediaries. A "limited panel" broker covers a smaller pre-selected group of lenders. A "tied" broker is restricted to a single lender or a small group (commonly used for in-house estate agency mortgage desks). The broker's status must be disclosed under MCOB rules.
Some UK lenders distribute only through brokers and are not available direct to consumers. A whole-of-market broker can access these broker-only products, which can provide a competitive advantage over the borrower going direct to their own bank. The broker should be able to confirm whether the recommended product is broker-only.
Specialist brokers focus on specific segments (adverse credit, large loans, buy-to-let portfolios, expats, professionals such as doctors and lawyers, retirees). Specialist segments often have lender panels that mainstream brokers do not cover, and specialist brokers' working knowledge of the segment's lender criteria can produce outcomes a generalist broker cannot.
Hidden costs and what to ask about
The headline fee is not the only cost in the mortgage process. The borrower should ask the broker (and the lender) about: the lender arrangement fee (often 999 pounds to 1,999 pounds, sometimes added to the loan), the valuation fee (often 0 to 500 pounds depending on the product and property value), the broker's CHAPS fee or telegraphic transfer fee on completion (often 30 to 60 pounds), the conveyancing fees (separate from the broker, often 1,000 to 2,500 pounds), and any early repayment charges on the existing mortgage if remortgaging.
The mortgage broker should be transparent about which costs the broker controls (the client fee, procuration fee) and which the borrower will pay separately to the lender or solicitor. A good broker provides a "total cost" schedule showing all the expected costs before the application is submitted.
Some brokers offer cashback (rebating a portion of the procuration fee to the borrower) or no-fee structures funded by the procuration fee. These can be competitive on the right case but may not produce the best total cost compared with a fee-charging broker placing the case with a lender offering better rates.
How we verified this
This article reflects the FCA's Mortgage Conduct of Business Sourcebook (MCOB) for the disclosure and conduct rules on broker fees and procuration fees, the FCA's Consumer Duty rules introduced in 2023, the Financial Ombudsman Service guidance on broker fee disputes, and the FCA Financial Services Register for the regulated status of mortgage brokers. Specific fee levels and procuration fee rates vary between brokers and lenders, and current figures should be checked through a broker's Initial Disclosure Document and the lender's product literature.
Disclaimer: This article is general information about UK mortgage broker fees. It is not financial advice. Specific fees vary by broker and by case. Anyone seeking mortgage advice should check the broker's Initial Disclosure Document, ask for a full breakdown of the client fee and procuration fee on each recommendation, and confirm the broker is authorised by the FCA on the Financial Services Register.
Frequently asked questions
How much do mortgage brokers charge in the UK?
UK mortgage brokers typically charge a flat fee (300 to 1,000 pounds on standard residential cases), a percentage of the loan amount (often around 0.4 percent with a cap), or no client fee at all. Specialist cases carry higher fees. The fee must be disclosed in writing under FCA Mortgage Conduct of Business Sourcebook rules before the broker starts chargeable work on the case.
Is it worth paying a mortgage broker fee?
A broker's value depends on the case. For straightforward cases at simple loan-to-values, a borrower going direct to their own bank can produce a competitive outcome. For complex cases (adverse credit, self-employment, buy-to-let portfolio, large loans, age over 60), specialist broker access to the right lender panel can produce a materially better outcome than going direct. The total cost comparison over the fixed term should drive the decision.
What is a procuration fee?
A procuration fee is the commission paid by the mortgage lender to the broker on completion, typically 0.3 to 0.45 percent of the loan amount on mainstream residential cases and higher on buy-to-let and specialist cases. The fee is built into the lender's product pricing and is not separately charged to the borrower. It must be disclosed in the European Standardised Information Sheet (ESIS) attached to the mortgage offer.
Are mortgage broker fees refundable?
The position depends on when the fee is paid and what the broker's disclosure document states. Fees paid on completion are not at risk if the case does not complete. Fees paid on application are sometimes partially or fully refundable if the case fails; the disclosure document sets out the terms. The Financial Ombudsman Service handles complaints where the borrower considers the broker has unfairly retained a fee.
Can a mortgage broker work without charging me?
Yes, if the broker operates a no-client-fee structure and relies on the procuration fee from the lender as the sole income on the case. The lender's product pricing reflects the procuration fee, so the broker is not literally working unpaid. The total cost to the borrower depends on the rate of the recommended product, not on whether the broker charges a client fee directly.
