If you are about to buy a home or remortgage, the cost of a mortgage broker is a fair question to ask before you pick up the phone. The real answer is that it ranges from nothing at all to well over £1,000, depending on how the broker is paid, the size of your loan and how straightforward your case is. Plenty of people pay far more than they need to simply because nobody explained how broker fees work.
This guide explains how mortgage brokers charge, what the typical broker fees look like in the UK in 2026, what affects the price, and how to tell whether a fee is fair. It also covers the other costs that come with a new mortgage deal, because the broker fee is only one part of the total cost of borrowing.
I have worked in mortgage advice for over 20 years, so I will be open about how our own fees work too. But this is not a sales pitch. Whoever you use, you should know what you are paying and why before you agree to anything.
Most UK mortgage brokers fall into one of three groups:
Independent research from Boon Brokers in February 2026 found that, among borrowers who paid a fee, the average mortgage broker fee was £643 on a purchase and £623 on a remortgage, with £500 the most common single figure. So if you are quoted around £500, that is typical for a fee charging broker. If you are quoted £1,500 on a standard mortgage, it is worth asking why.
Understanding how brokers work is the key to understanding what you are being charged. There are only two sources of money: the lender and you.
When a mortgage completes, the lender pays the broker a procuration fee, often called a proc fee. It is lender commission for introducing the business and handling the mortgage application. A common rate is around 0.35% to 0.45% of the loan size, although it varies by lender and product.
As a rough guide, lender commission at 0.35% works out like this:
You do not pay the procuration fee. It comes out of the lender's own budget, and it does not change the interest rate or the mortgage deal you are offered. The same product costs you the same whether you go through a broker or not.
Some brokers also charge you directly. This might be a fixed fee, a percentage of the mortgage amount, or occasionally an hourly rate. The fee covers the time spent on research, paperwork, dealing with the lender and chasing the case through to completion.
Most fee charging brokers use a combination: they receive the lender commission and charge a separate broker fee on top. That is perfectly legal and common, but it should always be explained to you clearly and in writing at your initial consultation.
According to the same 2026 research, 44% of fee charging brokers used a fixed fee, 29% charged a percentage of the loan, 19% a percentage of the property value and 7% split the fee into stages. Here is what each looks like in practice.
A flat fee is the simplest to understand. You know the figure from day one, and it does not go up if your loan amount does. Typical fixed fees run from around £300 to £1,000, with £500 to £700 the most common range.
Some brokers charge a percentage of the mortgage amount, usually between 0.3% and 1%. On a £150,000 mortgage, 0.35% is £525 and 1% is £1,500. Percentage fees can get expensive on a large mortgage, so always ask for the fee in pounds rather than as a percentage.
A small number of advisers charge an hourly rate instead, more often for complex or high value cases or for advice that does not end in a mortgage. If you are quoted by the hour, ask for an estimate of the total time and a cap.
Payment timing varies. Some brokers take the whole fee upfront at the initial consultation, some on application, some when the mortgage offer is issued and some only when the mortgage completes. Ask whether any part of the fee is refundable if the mortgage does not go ahead, and get the answer in writing.
Brokers do roughly the same amount of work on a £90,000 mortgage as on a £300,000 one, but the lender commission on the smaller loan is much lower. That is why many brokers who are fee free on standard cases charge a fee on small loans. A lower loan amount does not mean a simpler case.
Self employed borrowers, contractors, company directors and anyone with complex income usually need more work: more documents, more questions from the underwriter and more care choosing a lender that will accept the way you are paid. Our self employed mortgages page explains what lenders look for.
If you have missed payments, defaults, CCJs or an IVA on your credit file, fewer lenders will consider you and each application needs more preparation. Specialist brokers who focus on complex financial situations like bad credit often charge more because the work involved is genuinely greater. The bad credit mortgages guide covers what is possible.
Buy to let portfolios, limited company purchases, large mortgages, private banks and unusual properties can all mean higher broker fees. A standard mortgage for an employed first time buyer should sit at the lower end of the scale.
An online broker or telephone service is sometimes cheaper than an adviser you meet in person, although many local firms now offer both. What matters more than the format is how many lenders they compare and how much help you get.
Where you live makes little difference. Broker fees are broadly similar across the UK, because the work on a case is the same whether the property is in a small town or a big city. Your loan amount and how complex your case is matter far more than your postcode.
A fee free mortgage broker is paid only by the lender. You get the mortgage advice, the research and the application handling without paying a broker fee yourself. Fee free advice is common in the UK, and many good brokers work this way on standard residential cases.
It can be. The quality of mortgage advice depends on the adviser's experience, how many lenders they can access and how carefully they look at your situation, not on whether they charge a fee. Every broker has to be authorised by the Financial Conduct Authority and has to recommend a suitable mortgage for you, whoever pays them.
A common worry is that lender commission might tempt a broker to favour one lender over another. In practice, most mainstream lenders pay similar procuration fees, and the adviser still has to show in writing why the mortgage they recommend suits your needs. If you want reassurance, ask the broker to show you the other options they considered and why they ruled them out.
Ask how many lenders a broker works with. A whole of market broker can compare products from many lenders, including deals that are only available through intermediaries. A tied broker works with one lender or a small panel, which limits your choice. Some brokers are whole of market for most products but not for every niche, so it is fine to ask which lenders they cannot access.
To be clear about our own position: we are fee free on over 90% of the mortgage applications we handle. For those clients, we are paid by the lender and there is nothing to pay us.
There are two situations where we do charge:
We will always tell you in writing whether there is a fee, how much it is and when it is due, before we start any work. If your case is straightforward and over £100,000, you will not pay us a penny. You can read what clients say about us on our reviews page.
Numbers make this easier to follow, so here are three common situations and what you might pay a broker in each.
A standard purchase. An employed couple are buying a £300,000 home with a £240,000 mortgage and a clean credit history. A fee free broker would charge them nothing. A typical fee charging broker would ask for around £500, and a broker charging 1% of the loan would want £2,400 for the same work. The lender pays the same commission in every case.
A small mortgage. A first time buyer is borrowing £85,000 on a flat. At 0.35%, the lender commission would be about £298, which is not much for several weeks of work on a first purchase. This is why many otherwise fee free brokers charge a modest fixed fee on smaller loans.
A complex case. A self employed borrower has one year of accounts and a default from two years ago. Fewer lenders will consider the case, the paperwork takes longer and the underwriter will ask more questions. Most brokers would charge a fee here, often a few hundred pounds and sometimes up to around £1,000, depending on how specialist the lender needs to be.
Estate agents often have an in house mortgage adviser too, sometimes from a national network such as Mortgage Advice Bureau. Their fees vary from office to office, so ask for the figure in writing, just as you would with any other broker. You are never obliged to use the adviser your estate agent recommends.
The broker fee is only one part of the cost of a new mortgage. These are the other charges that commonly apply, and a good broker will factor all of them into the comparison rather than just the interest rate.
Many mortgage lenders charge an arrangement fee of around £999 or more for a particular mortgage deal. You can often add it to the loan, but you then pay interest on it. A deal with a higher rate and no fee can work out cheaper on a smaller mortgage.
Some lenders charge a booking fee when you submit the mortgage application, and a valuation fee to assess the property's market value. Many remortgage products include a free valuation.
You will need a solicitor or conveyancer for a purchase. On a remortgage to a new lender, legal work is often free or covered by cashback.
If you leave a deal early you may pay early repayment charges, typically 1% to 5% of the balance. If you are thinking of paying off part of your mortgage instead, our mortgage overpayment calculator shows how much you can usually pay without a charge. Lenders also charge a small mortgage account exit fee when the mortgage is repaid. Your mortgage offer and the European Standardised Information Sheet (ESIS) list every fee, so read them carefully.
For most people, yes, even if they pay a fee. Here is why.
On a £250,000 mortgage over 25 years, the difference between a 4.5% rate and a 4.3% rate is about £28 a month, or £1,694 over a five year fixed rate. On a £200,000 mortgage, being just 0.1% cheaper is worth around £679 over five years. Either figure covers a typical broker fee, before you count the time saved.
Some lenders only work through brokers, and some offer broker exclusive products. A bank offers its own mortgage products only. A broker can compare many lenders' products side by side.
Every lender has different lender criteria. A good broker knows which lenders suit your income, deposit and credit history, and can steer you away from a lender that would decline you. That matters, because each declined application can leave a mark on your credit file.
Your broker handles the mortgage application, chases the lender, talks to your estate agent and solicitor, and keeps the case moving towards your mortgage offer. For many clients, that is worth paying for on its own.
Going direct can make sense in one situation: if you are staying with your current lender and simply switching to a new deal. Even then, it is worth having a broker check the whole mortgage market first. Our guide to product transfer vs remortgage explains the choice.
Before you agree to anything, ask these questions. A good mortgage broker will answer them without hesitation.
Most brokers are professional and open about their charges, but it is worth knowing what to watch for.
No. Many brokers are fee free on standard cases and are paid only by the lender. Others charge a fixed fee or a percentage of the loan. Not all brokers charge the same, so it pays to ask different brokers and compare.
Much the same as for anyone else: nothing with a fee free broker, or typically £300 to £700 with a fee charging broker. First time buyers often benefit most from advice because there is more to learn. Our first time buyer mortgages page walks through the process.
Similar to a purchase. The 2026 research put the average fee charging broker at £623 for a remortgage. Many brokers, including us, are fee free on standard remortgages over £100,000. See our remortgage advice page.
Not usually. You pay the same rate on a given product whether you use a broker or not, and a broker can compare other lenders too. Going direct only saves money if the broker charges a fee and the bank's own deal is also the best deal available. Our guide to going direct vs using a broker covers this in more detail.
Usually not. Broker fees are normally paid by you directly. Lender arrangement fees are different and can often be added to the loan.
That depends on the broker's terms. Some fees are refundable, some are not, and some are only charged on completion. Always check before you pay anything.
No. Lender commission does not change the interest rate you pay. A fee free whole of market broker can access the same mortgage products as a fee charging one.
Because lender commission is a percentage of the loan size, a small mortgage pays the broker very little for the same amount of work. A modest fixed fee covers the difference.
If you want to know what your mortgage will cost before you speak to anyone, our mortgage borrowing calculator gives you a starting point. When you are ready, book a free appointment or call 03300 432 428. We will tell you at the start whether there is a fee, and for most clients there is not.
Your home may be repossessed if you do not keep up repayments on your mortgage. Fee figures from other firms are taken from published research by Boon Brokers (February 2026) and Unbiased, and are a guide only. Alexander Southwell Mortgage Services Ltd is authorised and regulated by the Financial Conduct Authority, firm reference 1011890.
