Should you use the estate agent's recommended broker?

Most estate agents will suggest a mortgage broker at the same time they accept your offer. That recommendation usually comes with a referral fee paid to the agent. Here is what the rules say must be disclosed, and what to check before you agree.

Last checked 13 September 2026.

Six sections. Each anchored to a first-party source, checked 13 September 2026.

1. How the referral works

When an estate agent refers you to a mortgage broker and you complete a mortgage through that broker, the agent typically receives a referral fee from the broker, usually £150–£400 per completed mortgage. The broker may also pay the agent an ongoing commission or a retainer. This is a commercial arrangement between the agent and the broker, and it does not disappear just because neither party volunteers the information.

2. What must be disclosed under the Estate Agents Act

An estate agent must disclose any financial interest it has in services it recommends to a buyer or seller. Under section 21 of the Estate Agents Act 1979, an agent must tell you in writing if it or a connected person will receive a payment for referring you to another service, including a mortgage broker (Estate Agents Act 1979, s.21). If the agent is part of a group that includes a financial services arm, that arrangement must also be disclosed. In practice, disclosure is often buried in small print. Ask directly: does this agency receive any payment when I use your recommended broker?

3. What the FCA requires the broker to tell you

The mortgage broker receiving the referral from the estate agent is still subject to FCA rules. Before giving advice, the broker must tell you whether there are limits on the range of mortgages it will recommend, whether it charges you a fee, and whether it receives commission from the lender (MCOB 4.4A.1R and 4.4A.8R). The fact that the broker was introduced to you by an estate agent does not change these obligations. The broker must still disclose fees, commission, and the range of lenders it can access.

4. The whole-of-market question

An estate agent's recommended broker may be whole-of-market, covering most lenders, or it may operate from a panel of lenders only. A broker operating from a panel may not be able to access the most competitive rate for your circumstances. The broker must tell you which applies at the start (MCOB 4.4A.1R). Ask specifically: do you cover the whole market, including lenders who do not pay procuration fees?

5. When the estate agent's broker might be the right choice

The referral arrangement creates an incentive for the recommendation but does not make the broker bad. If the broker is whole-of-market, authorised on the FCA Register, transparent about fees, and able to explain the products they are recommending, they may be entirely suitable. The risk is not the relationship itself but whether it has narrowed the choice being presented to you. The test is whether the broker is searching the full market or only a panel, and whether you could find the same product more cheaply elsewhere.

6. How to check any broker recommendation

Look up the firm on the FCA Register before you engage. Confirm it is authorised and its permissions include arranging regulated mortgage contracts.
Ask at the first meeting: do you cover the whole market? Do you charge me a fee? Do you receive a commission from the estate agent?
If the broker cannot or will not answer these questions clearly, find a different broker.
Use our how to choose a broker guide for the full checklist.

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General information, not advice. Mortgage Brokers List is a directory and a set of free tools. Only an FCA-authorised adviser can recommend a mortgage for your circumstances. See our editorial standards.