Mortgage Broker Fees: What UK Brokers Charge in 2026

What a mortgage broker does, and who pays them

A mortgage broker, also called a mortgage adviser, searches the mortgage market for you and recommends a deal that fits your circumstances. They check which lenders are likely to accept you and deal with the lender on your behalf. In the UK, anyone giving mortgage advice must hold the Certificate in Mortgage Advice and Practice (CeMAP), and the firm must be regulated by the Financial Conduct Authority.

Brokers are paid in two ways, often both at once. The first is a fee charged to you, the borrower. The second is a commission paid by the lender when your mortgage completes, called a procuration fee. That commission is typically around 0.35% of the loan amount, and can range from about 0.2% to 0.5%. The lender pays it, not you, but the broker must tell you about it in writing before you commit.

The three ways mortgage brokers charge

Flat fee. You pay one fixed amount, typically £300 to £500 for a straightforward case, according to Habito, and more for complex cases. The fee is agreed upfront, and it is often charged on offer or completion, though some brokers ask for part of it when you apply.

Percentage fee. You pay a share of the loan, usually between 0.3% and 1% of the amount you borrow. At the typical rate of 0.35%, a £250,000 mortgage would cost you £875 in broker fees. Percentage fees grow with the size of the loan, so on a large mortgage they can become very expensive: 1% of a £400,000 loan is £4,000.

Fee-free, or commission only. You pay the broker nothing. The broker earns only the procuration fee from the lender, typically around 0.35% of the loan. Fee-free does not mean the mortgage itself is free: the lender may still charge a product or arrangement fee, and valuation and legal costs apply separately.

How much do mortgage brokers charge in the UK?

There is no standard price for mortgage advice in the UK. MoneyHelper puts typical mortgage advice fees at £300 to £1,000, or 0.35% to 1% of the mortgage amount, where a customer charge applies. Habito reports a similar picture, and a recent study it cites found that the most common single fee is £500.

What you actually pay depends on your case. A straightforward first-time buyer or remortgage often costs between £0 and £500. Self-employed borrowers, people with credit problems and buy-to-let landlords usually pay more, sometimes £500 to £1,000, and specialist cases can reach £2,000 or above. Before you judge any fee, run the numbers with our mortgage calculator to see what each deal really costs.

When do you pay the fee, and what if the deal falls through?

When the fee is due matters almost as much as how much it is. Some brokers charge on completion only, so you pay nothing unless the mortgage goes through. Others charge when you receive a mortgage offer, so you pay even if the purchase later falls apart. A third group charges upfront when you first apply, and that fee is often non-refundable.

Before you agree to anything, ask three questions and get the answers in writing: when exactly is the fee payable, is any part of it refundable, and what happens if the mortgage does not complete? A broker who is reluctant to answer those questions clearly is telling you something.

Tied, restricted and whole-of-market brokers

Not every broker can search the whole market, and the type of broker you use affects both the choice of deals and the fee you pay. A tied adviser works for one lender and can only recommend that lender’s mortgages. There is usually no broker fee, because the lender pays the adviser, but you only ever see one lender’s deals.

A restricted broker recommends from a limited panel of lenders, while a whole-of-market broker searches across the market, though no broker covers every lender and some deals are only available direct. Whole-of-market brokers are the most likely to charge a fee, because their service covers more ground, but that wider search is also what can find you a better deal.

Why fee-free is not always the cheapest option

It is tempting to assume that a fee-free broker is always the cheapest choice, but the broker fee is a small part of the total cost of a mortgage. What matters is the total cost: rate, lender product fee and broker fee together over the fixed-rate term.

Imagine two brokers find you the same £250,000 mortgage. One charges a £500 fee and finds a rate of 4.5%; the other is fee-free but the best rate it can offer is 4.7%. The 0.2% rate difference costs about £500 a year in extra interest, so the fee-free broker costs you more within the first year. The cheapest broker fee and the cheapest mortgage are not the same thing.

How to compare mortgage brokers before you commit

Speak to two or three firms and ask each one the same questions.

• What is your fee, when is it payable, and is any of it refundable?
• How much commission will the lender pay you, and will you put both figures in writing?
• Are you tied, restricted or whole-of-market, and how many lenders do you search?
• What rate and total cost are you recommending, including the lender’s product fee?
• Are you regulated by the FCA? Check the firm on the FCA register before you proceed.

Under FCA rules, brokers must disclose their fees and commission before you agree anything, so a broker who will not put figures in writing is not meeting the basic standard. If you are still working out whether you are ready to apply, our guides to mortgage pre-approval and how much house you can afford will help you check your position first.

This article is general information only, not financial advice.