Do you need a mortgage broker? What they do, fees and checks

What does a mortgage broker do

A mortgage broker is a firm or person that searches mortgages from a range of lenders, recommends one that fits your circumstances and handles the application for you. You do not have to use one: you can apply straight to a bank or building society. A firm that advises on or arranges mortgages has to be authorised by the Financial Conduct Authority (FCA), or act as the appointed representative of a firm that is, and you can check this yourself on the FCA's Financial Services Register.

In practice, a broker will usually:

1. Ask about your income, outgoings, debts, deposit and plans.
2. Check which lenders' criteria you and the home fit.
3. Recommend a mortgage and explain why it is suitable for you.
4. Arrange an agreement in principle, then submit the full application.
5. Chase the lender, the valuer and your solicitor until you have a mortgage offer.

The guides to a mortgage in principle and how to get a mortgage explain each of those stages.

Mortgage broker, mortgage adviser or mortgage advisor: is there a difference

In everyday use, no. "Mortgage broker", "mortgage adviser" and the spelling "mortgage advisor" are all used for someone who can recommend a mortgage. "Broker" usually means an adviser who is not tied to one lender. An adviser may equally be a member of staff at a bank or building society who can only recommend that lender's own mortgages.

The job title tells you less than two other things: the range of lenders the firm covers, and how it is paid.

Whole of market, limited range or tied to one lender

FCA rules require a firm to tell you whether there are any limits on the range of mortgages it will offer you and, if so, what they are. A firm that does not cover the whole market must either name the lenders it uses or tell you how many there are and that you have the right to ask for the list. If a firm will not look at deals that are only available by going direct to a lender, it has to tell you that too. FCA guidance also says a firm should not call itself an independent mortgage adviser unless its range across the market is unlimited.

Mortgage broker fees: how much does a mortgage broker cost

There is no set price: each firm sets its own charges. As an indication, MoneyHelper's guide to adviser fees says mortgage advice can cost nothing up front where the adviser is paid commission by the lender, or a fee of £300 to £1,000, or 0.35% to 1% of the mortgage amount. Its example is a £200,000 mortgage, where that percentage range works out at £700 to £2,000. A particular firm may charge less or more than those figures.

How mortgage brokers are paid

• A fee from you. This can be a flat fee, an hourly rate or a percentage of the loan. Ask when it is due, for example on application, on offer or on completion, and whether any of it is refunded if the purchase falls through.
• Commission from the lender. The lender pays the broker, typically once your mortgage completes. The industry calls this a procuration fee. You do not pay it directly.
• Both. Some brokers charge a fee and also receive commission.

A broker's fee, like any other fee, can be added to the mortgage only if you choose that. FCA rules do not allow fees to be added to the loan automatically, and MoneyHelper points out that you then pay interest on the fee for as long as it stays in the loan.

What a broker must tell you about its pay

Under the FCA's mortgage rules, a firm must tell you at the outset how it will be paid. That includes any fee it will charge you, when the fee is payable and whether it can be refunded, and whether the firm will receive commission from the lender. The fee has to be given as a cash sum where possible. Where it is a percentage of a loan that is not yet known, the firm must give the percentage and an example in pounds.

Where a broker receives commission from a lender, the mortgage illustration it gives you (the ESIS) must show the amount. A broker that is not tied to one lender must also tell you, if you ask, how the commission it receives differs from one lender to another, and must let you know you have the right to ask.

Broker fees sit alongside the lender's own charges, such as a product fee or valuation fee. The mortgage fees guide lists them, and the cash you need calculator adds them to your deposit and stamp duty.

Mortgage broker or bank: going direct to a lender

You can approach a lender yourself. Its adviser can recommend from that lender's range only, and MoneyHelper notes that in-house advisers at banks and building societies do not normally charge a fee for advice. The trade-off is that nobody compares that lender with the rest of the market for you.

Some buyers do both: they look at what lenders publish, then decide whether to pay for advice. The mortgage rates comparison sets out lenders' published rates for your price, deposit and term, with each figure linked to the lender's own page. It is an illustration, not advice, and it does not rank products for you.

Advised and execution-only sales

There are two ways to take out a mortgage.

• Advised. The firm asks about your circumstances and recommends a mortgage. FCA rules require that recommendation to be suitable for you.
• Execution-only. You choose the mortgage yourself and the firm carries out your instruction. The firm does not assess whether it suits you.

The FCA changed its rules on 22 July 2025. Before then, talking a mortgage through with a firm generally meant the sale had to be advised. As of November 2026, a conversation with a firm does not automatically trigger advice, so you can discuss your options with a firm and still go ahead execution-only, or ask for advice. A firm must not steer you away from advice.

If you go ahead without advice, the firm must tell you that it is not required to assess whether the mortgage is suitable and that you will not have the protection of the FCA's rules on suitability. Where you have spoken or exchanged messages with the firm, you must also confirm that you understand this and are choosing to proceed execution-only.

Some sales cannot be execution-only at all. With limited exceptions, FCA rules do not allow it where the main purpose of the loan is to consolidate debts, where you are using a statutory right to buy, or where the loan is a shared equity loan.

Do I need a mortgage broker

No one has to use a broker. Buyers commonly turn to one when their case is less standard, for example if they:

• Are self-employed or have income from several sources. See the self-employed mortgage guide.
• Have a small deposit, or need help from family.
• Have missed payments or other marks on their credit file.
• Are buying a home with its own lending rules, such as a new-build flat or a shared ownership home.
• Are short of time, or do not want to compare lenders' criteria themselves.

Buyers with straightforward income who are comfortable comparing deals sometimes go direct to a lender instead. Either way, it helps to know your numbers first. The how much you could borrow calculator and the mortgage calculator give you an illustration to take into any conversation. A qualified, regulated mortgage adviser can then tell you what a lender is likely to accept in your circumstances.

How to check a mortgage broker on the FCA Register

The Financial Services Register is the FCA's public record of firms and individuals that are, or have been, authorised. It is free to search at register.fca.org.uk.

1. Ask the firm for its full name and its firm reference number, and search the Register for both.
2. Check the firm is currently authorised, and look at what it is allowed to do.
3. If the firm is an appointed representative, the Register shows the authorised firm (its principal) that is responsible for it.
4. Use the contact details shown on the Register to get back in touch with the firm. The FCA warns about clone firms, which pretend to be a genuine authorised firm and may quote a real firm's details.
5. Look up the individual adviser too, and read any disciplinary or regulatory action on their record.

The FCA also publishes a Warning List of firms it has issued warnings about.

Buying a new build: the builder's recommended adviser

Sales teams on new developments often introduce buyers to a mortgage adviser. Some of these advisers work on new-build purchases regularly, and can say which of the lenders they cover accept the incentives on offer and how long those lenders' mortgage offers last. But the choice is yours. For builders registered with the New Homes Quality Board, the New Homes Quality Code (sections 1.3 and 1.7) says:

• The builder must make clear that you are free to choose your own advisers and do not have to use one it recommends.
• It cannot offer incentives when recommending a professional adviser.
• It must not suggest that a sale may not go ahead unless you use a particular adviser, such as a conveyancer or mortgage broker.
• If it receives a fee, commission or other reward for the introduction, it must tell you in writing, before you make any commitment, what the reward is, the expected amount and who receives it.

Whoever you use, two useful questions are how many lenders they will search for your plot, and how each lender treats the builder's incentives. The new-build mortgages guide explains why that matters, and the mortgage hub gathers the calculators and rate pages in one place.

If something goes wrong: complaints, the ombudsman and the FSCS

Start with the firm. The FCA says you normally need to complain within 6 years of the problem happening, or within 3 years of becoming aware that you had cause to complain. The firm must give you the outcome in writing within 8 weeks.

If you are unhappy with the response, or do not get one in time, you can take the complaint to the Financial Ombudsman Service, within 6 months of the date on the firm's final response. The service is free. As of November 2026, it can tell a firm to pay up to £455,000 for complaints referred on or after 1 April 2026 about things a firm did on or after 1 April 2019.

The Financial Services Compensation Scheme (FSCS) is different: it steps in only when a firm has failed. For mortgage advice about a home in the UK that is your main residence, the FSCS says it can pay up to £85,000 per eligible person, per firm, where the firm failed after 1 April 2019.

Questions to ask before you choose

1. Are you authorised by the FCA, and what is your firm reference number?
2. Do you cover the whole market, a panel or one lender, and do you look at direct-only deals?
3. What will you charge me, when, and is any of it refundable?
4. Will you receive commission from the lender, and how much?
5. Will you give me advice and a recommendation in writing?
6. Have you arranged mortgages on new-build homes, and on this type of home?
7. Who do I complain to if something goes wrong?

Some buyers put the same questions to two or three firms and compare the written answers.