Fees and commission explained
Mortgage broker fees: what you pay and how brokers earn
A mortgage broker may charge you, receive commission from a lender, or use both forms of payment. There is no universal UK broker fee, so compare the exact charge, service scope and total mortgage cost before proceeding.
MortgageConnector's charge
MortgageConnector does not charge consumers for an introduction. A matched broker is a separate firm and may charge for its advice or arrangement service. Ask the broker to disclose its own fee before advice begins.
How mortgage brokers get paid
Broker remuneration commonly falls into three models:
- Customer fee: you pay a fixed amount, a percentage, a staged charge, or another disclosed calculation.
- Lender commission: the lender pays the intermediary a procuration fee when qualifying business completes.
- Customer fee and commission: the broker receives both, sometimes with one amount offset against the other.
FCA mortgage rules require relevant information about customer fees, when they are payable, whether they can be reimbursed, and whether commission is received. Mortgage illustrations also contain intermediary-remuneration information. Read the documents supplied for the actual case rather than relying on a website average.
Your home may be repossessed if you do not keep up repayments on your mortgage. This page is general information, not regulated mortgage advice.
Is a fee-free mortgage broker cheaper?
Not necessarily. A broker that does not charge you can still receive lender commission. A charging broker might provide wider or more specialist work, but a fee does not prove better access or a better result. Compare the broker's scope and the mortgage's total cost over the period you expect to keep it.
Include the initial rate, reversion rate, product fee, valuation, legal work, incentives, insurance requirements, early repayment charges and broker fee. A lower broker fee can be outweighed by a more expensive mortgage, while a lower mortgage rate can be outweighed by product fees over a short holding period.
When can a broker fee be payable?
The charging point is set by the broker's terms. It might be when advice begins, when an application is submitted, when an offer is issued, at completion, or in stages. Do not assume a fee is refundable if the transaction fails. Obtain the charging terms in writing and ask what happens if the lender declines, the property is unsuitable, the seller withdraws, or you decide not to proceed.
Broker fee versus other mortgage costs
| Cost | Usually paid to | What to check |
|---|---|---|
| Advice or arrangement fee | Broker | Amount, payment point, refund terms and included service |
| Product or arrangement fee | Lender | Whether added to the loan and the interest cost if it is |
| Valuation fee | Lender or valuer | Whether a basic lender valuation is included |
| Survey fee | Surveyor | The inspection level appropriate for the property |
| Legal and search costs | Conveyancer and third parties | What the quote includes and whether fees depend on completion |
| Early repayment charge | Current or new lender | The charge period, calculation and permitted overpayments |
How to compare mortgage broker fees fairly
- Give each broker the same case information and intended mortgage amount.
- Ask for the fee and calculation method in cash terms where possible.
- Confirm the lender and product scope, including exclusions.
- Ask when the charge is due and whether any part is refundable.
- Compare the recommended mortgage on total cost, not only the broker fee or initial rate.
- Verify the advising firm and permissions on the FCA Register before acting.
Use the remortgage calculator to compare switching costs, or read using a broker versus going direct.
Questions to ask before agreeing to a fee
What fee will I pay?
Ask for the exact cash amount or calculation method, when it becomes payable, whether it is refundable, and whether another fee applies for future work.
Does the broker receive lender commission?
Ask whether the broker receives commission or a procuration fee, how the amount will be disclosed, and whether it changes between suitable lenders.
Which lenders can the broker consider?
Ask whether the service covers the whole market, a representative panel, a limited panel, or one lender, and whether direct-only products are excluded.
When is the fee earned?
Confirm whether the charge is due at application, mortgage offer, completion, or another milestone, and what happens if the purchase or remortgage stops.
What service is included?
Confirm whether the fee covers advice, application submission, lender queries, document checks, conveyancer liaison, protection discussions, and support after offer.
Request a free broker introduction
MortgageConnector does not charge for the introduction. Ask the matched broker to explain its own advice fee and lender commission before proceeding.
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