Mortgage Broker Fees
Mortgage broker fees explained: what should you pay in 2025? This guide covers UK broker fees, commission structures, and whether fee-free is worth it.
Typical range for standard mortgage applications - many are completely fee-free
What lenders pay brokers - this is why many can offer fee-free service to you
Adverse credit, self-employed, or unusual properties may attract higher fees for specialist work
Broker Fee Structures Explained
| Fee Type | Typical Cost | How It Works | Best For |
|---|---|---|---|
| Fee-free | £0 | Broker earns commission from lender (0.3-0.5% of loan) | Straightforward cases, first-time buyers |
| Flat fee | £300-£999 | Fixed amount regardless of loan size | Larger loans where percentage would be expensive |
| Percentage | 0.3-1% | Fee based on mortgage amount (e.g. £1,500 on £300k) | Smaller loans, complex cases |
| Hybrid | Varies | Small fee + commission from lender | Balanced approach, broker covers costs |
Fee-Free vs Paid Brokers
- No direct cost to you
- Paid by lender commission (0.3-0.5%)
- Good for straightforward cases
- Check they access whole market, not just commission-paying lenders
- May prioritise lenders with higher commission (rare but possible)
- Often more independence from lender influence
- May access exclusive deals not available fee-free
- Specialist expertise for complex cases
- Upfront cost (though often offset by better deals)
- May still receive lender commission on top of fee
When Higher Fees Are Justified
Adverse Credit
CCJs, defaults, IVAs require specialist knowledge and lender relationships. Expect £500-£1,500.
Adverse credit mortgages →Self-Employed
Complex income structures need expert assessment. Director dividends, contractor income, multiple income sources.
Self-employed mortgages →Non-Standard Property
Unusual construction, ex-local authority, high-rise flats - requires lender matching expertise.
Non-standard construction →Large Loans
Mortgages over £500k often need private bank access and bespoke arrangements.
Large mortgages →Expat / Overseas
UK property purchase from abroad involves specialist lenders and complex compliance.
Expat mortgages →Portfolio BTL
Multiple rental properties require stress testing across entire portfolio.
Portfolio landlord →Questions to Ask About Fees
Before You Proceed
- What is your total fee?
- When is it payable?
- Do you also receive commission from lenders?
- What if the mortgage falls through?
- Are there any additional charges?
About Their Service
- How many lenders do you have access to?
- Are you whole-of-market?
- What experience do you have with my situation?
- What's included in the fee?
- Do you have reviews I can check?
Other Mortgage Costs to Consider
Broker fees are just one cost. Budget for these as well:
| Cost | Typical Amount | Notes |
|---|---|---|
| Lender arrangement fee | £0 - £2,000 | Product fee - can often add to loan |
| Valuation fee | £0 - £500+ | Often free with many lenders |
| Solicitor fees | £800 - £1,500 | Legal work for purchase/remortgage |
| Survey | £300 - £1,500 | Homebuyer report or full survey |
| Stamp duty | Varies | Based on purchase price and status |
People Also Ask
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Our Fee Structure
We're transparent about costs. For many straightforward cases we're fee-free, earning only lender commission. For complex situations requiring specialist expertise, we discuss fees upfront before any work begins. You'll always know exactly what you'll pay before committing.
Related: Mortgage in Principle | How Mortgages Work | Speak to an Adviser