TL;DR: UK mortgage broker prices typically run from zero to 700 pounds in fees charged to the borrower, on top of the procuration fee (commission) the lender pays the broker for arranging the mortgage. Some brokers are "fee-free" to the borrower and rely on the lender commission alone. Others charge a flat fee, a percentage of the loan, or a fee structured as part on application and part on completion. The Financial Conduct Authority (FCA) requires every broker to disclose the fee and the commission in writing before any application is made. The right structure depends on the loan size, the complexity of the case (adverse credit, self-employment, buy-to-let, large loans) and the broker's depth of market access.
Last reviewed May 2026
A mortgage broker (or mortgage adviser, or mortgage intermediary) is an FCA-authorised firm or individual who advises on and arranges mortgages on behalf of borrowers. Brokers sit between the borrower and the lender. They are paid either by the borrower directly (a "broker fee"), by the lender (a "procuration fee" or commission), or by a combination of both.
This guide explains the typical pricing structures used by UK mortgage brokers, how the procuration fee from the lender is set, when a broker fee is justified, what the broker's services typically include for the fee, the FCA disclosure requirements, and how a borrower can compare offers from competing brokers.
The two ways a mortgage broker earns money
Every UK mortgage broker is paid in one of two ways: a commission (the "procuration fee") from the lender, paid on completion of the mortgage, or a fee from the borrower, payable on application or completion or both. Most brokers use one or both of these channels.
The lender's procuration fee is typically 0.30 to 0.50 percent of the loan amount for a residential mortgage and 0.40 to 0.60 percent for a buy-to-let mortgage. On a 250,000 pound mortgage, that is roughly 750 to 1,250 pounds. The lender pays the broker directly after completion. The fee is set by each lender and disclosed to the broker; the FCA's MCOB rules require the broker to disclose this commission to the borrower in writing.
The borrower fee, where charged, ranges from zero (a "fee-free" broker) to around 700 pounds for a standard residential case, with higher fees (up to 1,500 pounds or more) for complex cases or larger loans. Some brokers charge a percentage of the loan, typically 0.3 to 0.5 percent, which can result in much larger fees on big loans.
Fee-free brokers and what they do not charge for
"Fee-free" brokers do not charge the borrower directly for arranging the mortgage. Their entire income on the case is the procuration fee from the lender. Many large national brokers (London & Country, John Charcol, Habito and similar) operate this way.
The fee-free model works on volume. The broker needs enough completed mortgages to make the unit economics viable. This typically restricts a fee-free broker to mainstream cases where the procuration fee is dependable and the work per case is manageable. Complex cases (adverse credit, self-employed with two-year accounts, multiple properties, large loans, expat applicants) often need a fee-paying broker because the workload outstrips the procuration fee.
Fee-free does not mean lower quality, but it can mean the broker has commercial reasons to favour the lenders that pay the higher procuration fees, all else being equal. The FCA rules require advice to be unbiased, but the borrower should always ask which lender bands the broker accesses and whether any lenders are excluded from the panel.
Fee-paying brokers: when the fee is justified
A fee-paying broker charges the borrower in addition to (or sometimes instead of) the procuration fee. The fee is justified where the case requires more work than a typical residential remortgage: adverse credit history, complex income (self-employed with retained profits, contractors, multiple income streams), unusual property types, large loans (above 1 million pounds), buy-to-let portfolios, or applications to specialist lenders that do not pay procuration fees.
A flat fee of 300-700 pounds for a standard residential case is at the lower end. Complex cases or those requiring multiple lender approaches before a successful application often justify 800-1,500 pounds. Very large or unusual cases can attract fees of 0.5 to 1.0 percent of the loan, particularly where the broker accesses private banks or specialist lenders.
The broker should disclose, in writing, the basis of the fee (flat, percentage, or part-on-application part-on-completion), the trigger for payment, and the refund position if the application is declined or withdrawn. The FCA Initial Disclosure Document (or equivalent) sets out the firm's fee structure before any specific advice is given.
What the broker actually does for the price
The broker's work on a standard residential case typically includes: a fact-find to understand the borrower's income, outgoings, deposit, credit history and circumstances; an affordability and eligibility check against a panel of lenders; recommendation of one or more suitable products with a written reason for the recommendation; submission of the application including handling the lender's queries; tracking the application through to offer; coordinating with the borrower's solicitor and the lender to completion; and post-completion follow-up such as scheduling a remortgage review before the deal period ends.
On complex cases the broker may need to write a covering letter to the underwriter explaining the case, gather and organise additional documentation, manage referrals to specialist lenders, and advise on packaging the application to maximise approval likelihood. This is where the extra fee is typically earned.
A whole-of-market broker accesses substantially every UK residential lender. A "panel" or "limited" broker accesses only a subset. The FCA requires the broker to disclose the scope of the panel: whole of market, limited panel, or single-lender (tied). Whole-of-market access is generally preferable, particularly for non-standard cases where the right lender may not be on a limited panel.
Procuration fee disclosure and the FCA rules
FCA rules require the broker to disclose, in writing before any application is submitted, the amount of any fee the borrower will pay and the amount of any commission the broker will earn from the lender. The disclosure must be specific enough that the borrower can see what each lender on the recommendation list pays.
The Mortgage Conduct of Business Sourcebook (MCOB) also requires the broker to give a suitability assessment in writing, explaining why the recommended product is suitable. The recommendation must take account of the borrower's needs and circumstances, not the size of the procuration fee. Where the broker has a commercial preference for certain lenders, this should not influence the recommendation.
The Financial Ombudsman Service can investigate complaints about mortgage advice. If the recommendation was unsuitable, or if the disclosure was inadequate, the Ombudsman can require the broker to compensate the borrower. The compensation framework is documented on the Ombudsman's site.
When to compare broker fees with going direct
Going to a lender directly avoids the broker fee but also gives up the broker's market scan and packaging service. A simple residential remortgage with a clean credit file, regular employment and a moderate loan can be cheaper direct (with the lender paying nothing to a broker) if the borrower is confident they have identified the best product themselves.
For most borrowers, a broker adds value because the market is large (around 100 lenders, thousands of products) and the criteria are detailed. A broker with a good system can match a profile to the lenders likely to approve at the best rate in a few minutes; the borrower trying to do the same direct can spend many hours and still miss the best deal.
The borrower's own time and the risk of a declined application (which leaves a hard credit footprint visible for 12 months) are real costs that should be weighed against the broker fee. For complex cases, going direct is rarely the right answer.
Comparing brokers: questions to ask before signing
A borrower comparing brokers should ask: is the broker FCA-authorised (check the Financial Services Register); is the panel whole-of-market or limited; what is the broker fee, when is it payable, and is any of it refundable if the application fails; what is the typical procuration fee from the lenders the broker uses; how much experience does the firm have with cases like the borrower's (self-employment, adverse credit, buy-to-let portfolio); and what is the typical time from initial enquiry to offer.
The combination of broker fee plus rate matters more than the fee in isolation. A fee-free broker that places the borrower with a lender 0.2 percentage points more expensive than the market best can cost more over a 5-year fix than a 500 pound fee with the lower rate. The borrower should ask for the recommendation in writing with the total cost over the deal period spelled out.
Reviews on independent platforms (Trustpilot, VouchedFor, Smart Money People) give some signal but are not a substitute for the direct conversation about the borrower's specific case. A 30-minute initial call with two or three brokers usually surfaces which one is the right fit.
How we verified this
This article reflects the FCA's Mortgage Conduct of Business Sourcebook (MCOB) rules on broker fee disclosure and commission transparency, the FCA's Initial Disclosure Document requirements, the Financial Ombudsman Service's published approach to mortgage advice complaints, the Financial Services Register for authorised firm lookups, and observable industry practice on procuration fee bands. The figures quoted are typical market levels in 2026; individual firms vary.
Disclaimer: This article is general information about UK mortgage broker pricing and is not personal financial advice. The right broker and fee structure depend on individual circumstances, the complexity of the case and the borrower's preferences. Any broker considered should be FCA-authorised; the Financial Services Register holds the authorisation status of every firm.
Frequently asked questions
How much does a mortgage broker cost in the UK?
Mortgage broker fees in the UK range from zero to around 700 pounds for a standard residential case, on top of the procuration fee the broker earns from the lender (typically 0.30-0.50 percent of the loan). Some brokers are fee-free to the borrower. Complex cases (adverse credit, self-employment, large loans, buy-to-let) often attract higher fees of 800-1,500 pounds or a percentage of the loan amount.
Are fee-free mortgage brokers as good as fee-paying ones?
For mainstream cases, often yes. Fee-free brokers earn their income from the lender's procuration fee and need volume to make this work, so they typically focus on standard residential cases where the workload is predictable. Complex cases often need a fee-paying broker because the work involved exceeds what the procuration fee alone covers.
Does the broker fee come off the mortgage or do I pay it separately?
It depends on the broker. Some collect the fee upfront on application. Some collect it on completion through the solicitor (deducted from the funds before the mortgage is released). Some allow the borrower to add the fee to the mortgage, although this is uncommon. The fee terms are set out in writing before any application; the borrower should ask for clarity if not stated.
Do I need a mortgage broker or can I go direct to a lender?
A simple case (clean credit, regular employment, mainstream loan size) can be arranged direct with a lender. For most borrowers, a broker is worth using because they scan the market of approximately 100 UK lenders and thousands of products. Complex cases (self-employment, adverse credit, buy-to-let, large loans) nearly always benefit from a whole-of-market broker.
How do I check if a mortgage broker is authorised by the FCA?
The Financial Services Register at register.fca.org.uk lists every FCA-authorised firm and individual. Search by firm name or by the firm's reference number (FRN). The register shows the firm's permissions, the names of approved individuals, and any enforcement history. Any broker giving regulated mortgage advice in the UK must appear on the register.
