When to use a mortgage broker

A difference of 0.3% on a mortgage rate can add up to thousands of pounds over a five-year fix.

What a mortgage broker does

A broker acts as an intermediary between you and mortgage lenders. They assess your situation — income, deposit, credit history, property type, employment status — and search the available market for the most suitable options. In the UK, a whole-of-market broker has access to hundreds of mortgage products from dozens of lenders, including deals not available directly to the public.

They handle the application on your behalf, liaise with the lender and your solicitor, and manage the process through to completion.

How brokers are paid

Fee-free brokers

Many residential mortgage brokers charge you nothing. They're paid a procuration fee by the lender — typically around 0.35% of the mortgage value — when the mortgage completes. This is disclosed to you as part of the process. That commission is paid by the lender rather than added to your rate as a separate charge, though you should still ask any broker how they are paid; lenders factor this into their standard pricing.

Fee-charging brokers

Some brokers charge a fee directly to you — typically £300–£500 — in addition to or instead of the lender's procuration fee. This is more common for complex cases (self-employed, adverse credit, unusual properties) where the broker's time is significant. Always ask upfront how they charge before proceeding.

Whole-of-market vs restricted

There are two types of mortgage broker:

Ask whether a broker is whole-of-market before using them.

When a broker helps most

Self-employed or complex income

Lenders treat self-employed applicants differently, and some are significantly more flexible than others. A broker who knows which lenders work best for your income structure can save you a rejection — a declined application is not itself recorded, but the hard credit search behind it is, and several in a short period can count against you — as well as finding a better rate.

Less than perfect credit history

A missed payment or CCJ doesn't automatically mean you can't get a mortgage — but it narrows the choice of lender. An experienced broker knows which lenders are most likely to accept your application without you having to apply speculatively.

Unusual property types

Non-standard construction, listed buildings, short leases, high-rise flats — many lenders won't lend on these. A broker who works with these regularly knows where to go and what to expect.

Remortgaging at the end of a fix

When your fixed rate ends, your lender will offer a new rate. A broker searches the whole market and handles the switch — often at no cost to you.

Mortgage advice is regulated — check the FCA register

Giving you a personal recommendation on a mortgage is a regulated activity. Any broker doing that must be authorised by the Financial Conduct Authority, or act as an appointed representative of a firm that is, and must follow the FCA's Mortgage Conduct of Business rules on affordability checks and disclosure. You can check a firm's or an individual adviser's status in seconds on the Financial Services Register at register.fca.org.uk — search by name or by the firm reference number, which should also appear on the broker's website and on any paperwork they send you. If a broker can't point you to that number, treat it as a reason to ask more questions before handing over your documents.

Questions to ask before you commit

A mortgage in principle before you start viewing gives you a budget, shows sellers and estate agents you can borrow, and speeds things up once you find a property.

Going direct to your bank: when it makes sense

There are situations where going direct can be sensible — typically if you have a large deposit, straightforward employed income, and a good relationship with a lender who consistently prices competitively. Check the market through a broker first, so you know what you are comparing against.

Planning to buy

The Plan sets out what you need to save and by when.

Common questions

Does using a mortgage broker cost me anything?

Often not. Many residential brokers are fee-free: the lender pays them a procuration fee — typically around 0.35% of the mortgage value — when your mortgage completes, and this is disclosed to you during the process. Lenders factor that fee into their standard pricing rather than adding it to your rate as a separate charge. Some brokers do charge you directly, typically £300–£500, either alongside or instead of the lender's fee — this is more common for complex cases such as self-employed income, adverse credit or unusual properties, where the broker's time is significant. Ask how a broker is paid before you commit.

Will speaking to a broker affect my credit score?

Speaking to a broker and getting their recommendation doesn't touch your credit file at all — the search happens when an application goes to a lender. A full mortgage application involves a hard credit search, which is recorded and visible to other lenders. A declined application is not itself recorded, but the hard search behind it is, and several hard searches in a short period can count against you. A broker knows which lenders are most likely to accept your particular situation, so you apply once, to the right lender, rather than speculatively to several. If you're getting an agreement in principle, ask whether the lender uses a soft or hard search first — many use soft searches, but not all.

What does whole-of-market mean?

A whole-of-market broker can search products from any lender that works with intermediaries — hundreds of mortgage products from dozens of lenders, including deals not available directly to the public. That's the broadest comparison you can get, and most independent brokers work this way. A tied or restricted broker can only offer products from a set panel of lenders, or from a single lender — your bank's mortgage adviser, for example, can only offer your bank's own products. Ask any broker this first.

Should I get a mortgage in principle before viewing houses?

Yes. A mortgage in principle from a broker gives you a clear budget, so you look at homes you can afford. It shows sellers and estate agents that you're a credible buyer, which matters in a competitive market. And it speeds the process up significantly once you find the right property, because the groundwork on your income and deposit is already done. Also work out the full cost of the purchase — deposit, stamp duty, legal fees, surveys and moving costs — with our cost of buying a home calculator, so the budget covers more than the price.

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