Mortgage broker fees

Some brokers charge you nothing; others charge up to £1,500 or more. The right question is not whether there's a fee — it's what the total arrangement costs and what you get for it.

Last checked 13 September 2026.

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

1. The two ways a broker is paid

A mortgage broker can be paid in two ways, and many are paid in both. The first is a broker fee (or advice fee) paid directly by you. The second is a procuration fee (or proc fee) paid by the lender when a mortgage completes — typically around 0.35% of the loan amount, so around £875 on a £250,000 mortgage. A broker who charges you no fee at all is still paid by the lender when you complete; the arrangement is not free, it is funded differently.

2. What the FCA requires the broker to tell you

Before giving advice on a regulated mortgage, a broker must tell you:

Whether it charges a fee, how much it is, and when it is payable (MCOB 4.4A.8R).
Whether it receives commission from the lender, and if so the amount or, where the amount is not yet known, the basis on which it will be calculated (MCOB 4.4A.8R).
Whether there are limits on the range of mortgages it will recommend — whether it covers the whole market, a panel of lenders, or just one lender — and if limited, what those limits are (MCOB 4.4A.1R and 4.4A.4R).

This information must be given at the start of the process, before advice is given, in the Initial Disclosure Document (IDD). If a broker does not provide it, ask.

3. Fee-free versus fee-charging: the practical difference

A fee-free broker is paid only by the lender's proc fee, which limits exposure to lenders willing to pay one. Most mainstream lenders do pay proc fees; some newer or direct-only lenders do not, which means a fee-free broker may not access every product on the market. A fee-charging broker has a wider potential lender set because their income doesn't depend on the lender paying them. In practice, the gap matters most for unusual cases or specialist lenders: for a straightforward residential purchase, both approaches usually reach the same pool.

4. When is the fee payable

Broker fees are typically payable at one of three points: on application, on offer, or on completion. A fee payable on application is charged even if the mortgage doesn't complete, which is a material risk if the case falls through. A fee on completion means you only pay if you proceed. Ask specifically: when is the fee payable and is it refundable if the mortgage doesn't complete? The broker must answer both questions before you commit.

5. What a typical fee looks like

Fee-free brokers: no charge to you; broker earns proc fee from lender. Fee-charging brokers typically charge £300–£500 for straightforward cases, £500–£999 for more complex applications (self-employed, adverse credit), and up to £1,500 or more for specialist cases where the broker spends significant time placing the case. Some brokers charge a percentage of the loan; ask what that translates to in cash. These are general ranges, not a ceiling or a floor.

6. If something goes wrong

Complain to the firm first in writing. If you're not satisfied with the response within eight weeks, you can take a complaint about a regulated mortgage broker to the Financial Ombudsman Service, which is free to use. The FCA's consumer page on mortgage brokers describes what to expect: FCA — Mortgage brokers.

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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.