Do Mortgage Brokers Charge a Fee?
Published 2026-07-17 · Updated 2026-07-17 · ~6 min read · Author bio ↓
Some do, some do not. Brokers are paid either by a commission from the lender when your mortgage completes, by a fee from you, or by both. Any fee must be disclosed in writing before you commit. A fee-free broker is not automatically cheaper, what matters is the total cost of the mortgage they arrange, not just the fee line.
- Two payment routes: lender commission (a procuration fee) and/or a client fee.
- Disclosure is not optional. You must be told the fee position in writing before you commit.
- "Fee-free" does not mean unpaid. That broker is being paid by the lender instead.
- Judge the total cost, not the fee line. A £0 fee on a worse mortgage is not a saving.
- Our position is £96 on a successful Decision in Principle, then £480 on completion.
How do mortgage brokers actually get paid?
- Procuration fee from the lender. When your mortgage completes, the lender pays the broker a commission. This is standard, and it does not come out of your loan.
- A fee from you. Some firms charge a flat fee, some a percentage of the loan. The amount and timing vary considerably between firms.
- Both. Many firms take a lender commission and charge a client fee. This is legitimate, provided it is disclosed.
Whichever model applies, you should see it in writing before you commit to anything. If you have not been told the fee position clearly and early, ask, and treat vagueness as a warning sign.
Focusing purely on the broker's fee is the wrong lens. On a typical mortgage, a modest difference in rate or a lender that accepts your income at a higher multiple will dwarf any broker fee over the life of the deal. The fee is a real cost and should be justified, but it is rarely the biggest number on the table.
Is a fee-free broker cheaper?
Not necessarily, and the question is slightly the wrong one. A fee-free broker is still being paid, by the lender, on completion. That is a normal, disclosed arrangement and there is nothing wrong with it.
The more useful questions are: are they whole-of-market or tied to a panel? Do they know the criteria for your situation? Will they tell you honestly if going direct suits you better? A fee-free broker with access to a handful of lenders may serve you far worse than a fee-charging broker who finds a lender that will actually accept you.
What should you ask before you commit?
- What is the fee, exactly? A number, not a range.
- When is it payable? On application, on offer, or on completion, these are very different risks to you.
- Is it refundable if the application does not complete?
- Do you also receive a commission from the lender? The answer is usually yes, and that is fine. You just want it stated.
- Are you whole-of-market? And if not, how many lenders do you actually have access to?
Broker fee vs lender fees, not the same thing
People often conflate these. A lender arrangement fee (sometimes called a product fee) is charged by the lender for the mortgage product itself, and can often be added to the loan, though doing so means paying interest on it. A broker fee, where one applies, is charged by the broker for the advice. They are separate, and both should be clearly set out before you proceed.
Want our fee position in plain terms? We will tell you on the first call, before you commit to anything.
Get in touchCommon questions
How much do mortgage brokers charge?
It varies widely by firm and by case complexity. Some charge nothing and are paid by the lender; others charge a flat fee or a percentage of the loan. Whatever the arrangement, it must be disclosed to you in writing before you commit to anything. Our position is £96 on a successful Decision in Principle, then £480 on completion.
When is the fee payable?
That depends on the firm. Common points are on application, on offer, or on completion. Ask specifically, and ask what happens to the fee if the application does not complete.
Are fee-free brokers actually free?
They are free to you, but they are still paid, by the lender, via a procuration fee on completion. That is a normal, disclosed arrangement. The question worth asking is whether the advice is whole-of-market, not whether the fee is zero.
Is a fee refundable if I do not get a mortgage?
It depends entirely on the firm's terms. Some fees are refundable, some are not, and some are only charged on completion. Get the answer in writing before you pay anything.
Do I pay a fee as well as a lender arrangement fee?
They are different things. A lender arrangement or product fee is charged by the lender for the mortgage product itself. A broker fee, if any, is charged by the broker for the advice. Both should be clearly set out.
How do I know a broker is being upfront about fees?
You should receive the fee position in writing before you commit. If it is vague, verbal, or only appears late in the process, treat that as a warning sign.
25 years advising on mortgages across Essex. FCA individual reference DJC01353.
Your home may be repossessed if you do not keep up repayments on your mortgage.
Bradgate Financial Solutions Ltd is authorised and regulated by the Financial Conduct Authority. FCA Firm Reference Number 672856.
Reviewed by David Clark, CeMAP, 2026-07-17