How Much Does a Mortgage Broker Cost in 2026?

If you're shopping for a mortgage, one of the first questions you'll ask is: how much does a mortgage broker cost? The answer depends on how the broker charges — some are completely free, while others charge a fixed fee, a percentage of your loan, or an hourly rate.

In early 2026, the average mortgage broker fee for a purchase stood at £643, up 28.6% year-on-year, according to research by Boon Brokers, reported by Mortgage Solutions (March 2026). For remortgages, the average was £623 — a 24.6% increase over the same period.

But here's the important part: many brokers don't charge you a fee at all. They earn their money through commission paid by lenders. So before you assume a broker will cost you hundreds of pounds, it's worth understanding exactly how the different fee models work — and which one suits your situation.

In this guide, we break down every way a mortgage broker gets paid, compare costs across different scenarios, and help you decide whether paying a broker fee is worth it.

Looking for fee-free mortgage advice? Compare mortgage brokers — free and find a broker matched to your needs.

⚠️ Your home may be repossessed if you do not keep up repayments on your mortgage.

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How Much Do Mortgage Brokers Charge?

How much mortgage brokers charge varies significantly depending on the firm, the complexity of your case, and the fee model they use. There is no single standard — mortgage broker fees in the UK range from £0 (fee-free) to over £1,000 for complex cases.

The most common fee structures are:

• No fee — the broker earns commission from the lender only
• Fixed fee — a set amount, typically between £300 and £700
• Percentage fee — usually 0.3% to 1% of the mortgage value
• Hourly rate — less common, typically £100–£200 per hour

All mortgage brokers in the UK must be regulated by the Financial Conduct Authority (FCA) and are required to disclose their fees to you before you commit to using their services. This is set out in the FCA's Mortgage Conduct of Business (MCOB) rules, which ensure transparency for consumers.

Average Mortgage Broker Fees in the UK

Based on the latest available data (March 2026), here are the average mortgage broker fees in the UK:

The mortgage broker cost you pay will depend on which model your broker uses. Fixed fees accounted for around 44% of cases, making them the most popular structure according to the same research.

Mortgage Broker Fee Comparison Table

To see how different fee models affect what you actually pay, here's a comparison across three common mortgage sizes:

As the table shows, the difference between fee models becomes significant on larger mortgages. A mortgage broker fee of 1% on a £400,000 loan is £4,000 — eight times the cost of a typical £500 fixed fee. Always ask your broker to confirm their fee structure in writing before you proceed.

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How Do Mortgage Brokers Get Paid?

Understanding how mortgage brokers get paid helps you assess whether you're getting value for money. Most brokers earn income through one or more of these channels:

Commission From the Lender (Procuration Fee)

The most common way brokers earn money is through a procuration fee — a commission paid by the mortgage lender when the broker successfully places a client with them. This fee is paid by the lender, not by you.

Procuration fees typically range from 0.35% to 0.5% of the loan value — a widely reported industry range cited by brokers including L&C Mortgages and covered in reporting by The Intermediary (March 2026). Exact rates vary by lender and are not publicly disclosed.

For example, on a £250,000 mortgage, a 0.35% procuration fee would earn the broker £875 from the lender.

Key point: Procuration fees do not typically increase the interest rate you pay. The lender builds this cost into their overall business model. However, it's worth asking your broker whether they receive different commission rates from different lenders, as this could theoretically influence their recommendations — although FCA rules require brokers to recommend suitable products regardless of commission levels.

Flat Fee

A flat fee (also called a fixed fee) is a set amount you pay the broker directly for their services. This is the most transparent fee structure and the most common, used in approximately 44% of broker cases (Mortgage Solutions, March 2026).

Typical flat fees range from £300 to £700, with £500 being the single most common amount charged. Some brokers charge a flat fee on top of the procuration fee they receive from the lender, while others charge a flat fee instead of relying on lender commission.

Flat fees may be payable at different stages — some brokers charge on application, others on mortgage offer, and some on completion. Always clarify when the fee is due.

Percentage of the Loan

Some brokers charge a percentage of your total mortgage amount, typically between 0.3% and 1%. This model was used in around 29% of cases.

This structure means you'll pay more on a larger mortgage. While this can be justified for complex, high-value cases where the broker does significantly more work, it can feel disproportionate for straightforward applications. A 1% fee on a £400,000 mortgage is £4,000 — a substantial sum that you should weigh carefully against the value provided.

Hourly Rate

Hourly rates are the least common fee structure for mortgage brokers in the UK. Brokers who charge by the hour typically charge between £100 and £200 per hour. This model is more often seen with independent financial advisers who offer mortgage advice as part of a broader financial planning service.

The disadvantage of hourly rates is unpredictability — if your case takes longer than expected, costs can escalate. Most homebuyers prefer the certainty of a fixed fee or the simplicity of a fee-free broker.

Fee-Free Brokers — How They Work

Fee-free mortgage brokers don't charge you anything directly. Instead, they earn their entire income from the procuration fees paid by lenders when they successfully arrange a mortgage for you.

This model is popular with borrowers — and for good reason. You receive professional mortgage advice without paying a direct fee. However, it's worth understanding a few nuances:

• Panel size matters. Some fee-free brokers work with a smaller panel of lenders (those who pay higher procuration fees). A whole-of-market broker, by contrast, searches across the majority of available lenders. Always ask whether your broker is whole-of-market.
• Same products available. Research suggests that around 31% of borrowers who paid a broker fee were unaware that fee-free brokers could access the same lenders and products (Mortgage Solutions, March 2026).
• Quality of service. Fee-free doesn't mean lower quality. Many of the UK's largest and most reputable brokerages operate on a fee-free model.

Want to compare fee-free brokers? Find a mortgage broker matched to your needs — free.

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Are Mortgage Brokers Free?

Some mortgage brokers are genuinely free for you to use. As explained above, fee-free brokers earn their income entirely from lender commissions (procuration fees), so you pay nothing out of pocket.

But "free" doesn't always mean zero cost. Here's what to watch for:

When You Won't Pay a Fee

You typically won't pay a mortgage broker fee when:

• The broker operates a fee-free model — they rely solely on lender procuration fees
• You're offered a free initial consultation — many brokers, even those who charge fees, offer a no-obligation first meeting at no cost
• The broker waives fees for certain products — some brokers waive their fee on straightforward cases or for first-time buyers as a way to attract new clients

Always confirm in writing whether the service is genuinely fee-free or whether charges apply at a later stage (such as on mortgage offer or completion).

What Is "Double Dipping"?

"Double dipping" is a term used when a mortgage broker charges you a direct fee and also receives a procuration fee from the lender. This is not illegal — and in fact, it's quite common. Many brokers who charge a fixed fee of, say, £500 will also receive 0.35%–0.5% commission from the lender.

The FCA requires brokers to disclose all fees and commissions to you. If your broker charges a fee, ask them directly:

• "Do you also receive commission from the lender?"
• "What is the total amount you will earn from arranging my mortgage?"

Double dipping isn't inherently unfair — the broker is providing a professional service, and the combined income may be reasonable for the work involved. But you should always know what you're paying for, both directly and indirectly.

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Mortgage Broker Costs by Scenario

The mortgage broker cost you face can vary depending on your circumstances. Here's how fees typically differ across common scenarios:

First-Time Buyers

If you're a first-time buyer, many brokers offer fee-free services or reduced fees to attract your business. First-time buyers often benefit from:

• Fee-free whole-of-market brokers who earn their income from lender commission
• Reduced flat fees (some brokers charge £250–£400 for straightforward first-time buyer cases)
• Free initial consultations to discuss your options with no obligation

A broker can be particularly valuable for first-time buyers because navigating mortgage products, understanding affordability calculations, and dealing with solicitors and estate agents for the first time can be overwhelming. The cost of a broker — even if you pay a fee — is often offset by the time saved and the confidence that you're on the right product.

Remortgaging

If you're remortgaging, broker fees are broadly similar to purchase fees. The average remortgage broker fee in early 2026 was £623 (Mortgage Solutions, March 2026).

Remortgaging is often more straightforward than a purchase, so you may find more brokers willing to handle it fee-free. However, if you have a complex situation — such as switching from a residential to a buy-to-let mortgage, consolidating debts, or releasing equity — a broker may charge a fee to reflect the additional work.

Buy-to-Let

Buy-to-let mortgages tend to attract higher broker fees because:

• Fewer lenders offer buy-to-let products, requiring more specialist knowledge
• Affordability calculations are different (based on rental income, not salary)
• Lender criteria vary significantly, making broker expertise more valuable

Expect to pay a flat fee of £500–£1,000 or a percentage fee for buy-to-let advice. Some fee-free brokers do handle buy-to-let, but the panel of lenders available may be smaller.

Bad Credit or Complex Cases

If you have bad credit, are self-employed with complex income, or have other circumstances that make you a non-standard borrower, broker fees are often higher. This reflects the significant additional work involved:

• Researching specialist lenders who accept non-standard applicants
• Preparing detailed applications with supporting documentation
• Potentially needing to approach multiple lenders

Fees for complex cases can range from £500 to £1,500+, depending on the level of difficulty. In these situations, a broker isn't just convenient — they may be essential, as many specialist lenders only accept applications through intermediaries.

For complex cases, it's especially important to speak to a qualified mortgage advisor who understands your specific circumstances.

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Is It Worth Paying a Mortgage Broker?

For most borrowers, using a mortgage broker — whether fee-free or fee-charging — is worth it. A broker can save you money by finding a more competitive rate, save you time by handling the application process, and reduce stress by managing communication with lenders.

But is it worth paying a fee specifically? Let's look at the numbers.

Worked Example: Broker Fee vs Long-Term Savings

Consider this scenario: you're borrowing £250,000 over 25 years on a repayment mortgage.

• Without a broker, you go directly to your high street bank and are offered a 2-year fixed rate of 4.24%
• With a broker, they find you a rate of 3.89% from another lender — a difference of 0.35%

(Note: These are illustrative rates for comparison purposes only. Actual rates depend on your circumstances, loan-to-value ratio, and the products available at the time. Rates accurate as of March 2026. The Bank of England base rate was 3.75% as of February 2026, per Bank of England. Monthly repayments calculated using the standard annuity formula: M = P × [r(1+r)^n] / [(1+r)^n – 1].)

In this example, paying a £500 broker fee still leaves you £663 better off over just the initial 2-year fixed period. Over the full mortgage term, if the broker consistently finds you better deals at each remortgage point, the cumulative savings could run into thousands of pounds.

Of course, there's no guarantee a broker will find a cheaper rate — sometimes your bank's product is the most competitive. But a whole-of-market broker searching across dozens of lenders gives you the best chance of finding the right deal.

See how much you could save. Try our mortgage calculator to compare different rates and terms.

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What to Ask Your Broker About Fees

Before committing to a mortgage broker, make sure you understand exactly what you'll pay and what you'll get for your money. A good broker will be completely transparent — and FCA rules require them to be.

5 Questions Before You Commit

Use this checklist when speaking to any mortgage broker:

1. "Do you charge a fee, and if so, how much?"

Get the exact amount or percentage in writing. Ask whether it's a flat fee, percentage, or hourly rate.

1. "When is the fee payable — on application, on mortgage offer, or on completion?"

This matters for your cash flow planning. Some brokers charge upfront; others only charge once your mortgage completes. If a broker charges upfront and the mortgage falls through, ask whether you'll receive a refund.

1. "Do you also receive commission from the lender?"

This tells you whether you're dealing with a fee-only, commission-only, or dual-income broker. There's nothing wrong with a broker earning both, but you should know.

1. "Are you whole-of-market, or do you work with a limited panel of lenders?"

A whole-of-market broker searches across the majority of available mortgage products. A tied or multi-tied broker only recommends products from a limited panel. Both are legitimate, but whole-of-market gives you broader coverage.

1. "Are mortgage broker fees negotiable?"

Some brokers will negotiate — particularly for larger mortgages, repeat clients, or straightforward cases. It never hurts to ask. If a broker won't budge on their fee, ask what services are included (e.g., do they handle the full application, liaise with solicitors, and support you through to completion?).

Ready to find a broker? Speak to a broker matched to your needs — it's free to compare.

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If You're Struggling Financially

If you're experiencing financial difficulty — for example due to job loss, illness, bereavement, or relationship breakdown — it's important to know that support is available. A good mortgage broker should consider your circumstances carefully and ensure any recommendation is suitable for your situation, in line with the FCA's Consumer Duty requirements.

You can also contact these free, independent services for help and advice:

• MoneyHelper — free, government-backed money guidance. Call 0800 138 7777.
• StepChange — free debt advice and support. Call 0800 138 1111.
• Citizens Advice — free advice on debt, housing, and consumer rights.

These services are confidential and can help you understand your options before committing to any mortgage or broker fees.

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FAQs

What is the average mortgage broker fee UK?

The average mortgage broker fee in the UK for a property purchase is £643 as of early 2026, according to research reported by Mortgage Solutions (March 2026). For remortgages, the average is £623. However, fees vary widely — many brokers charge nothing at all (fee-free), while others charge flat fees between £300 and £700, or a percentage of the loan amount (typically 0.3%–1%). The most common single fee amount is £500.

Is it worth paying a mortgage broker?

For most borrowers, yes. A mortgage broker can search across dozens — or even hundreds — of mortgage products to find the most competitive rate for your circumstances. Even after paying a broker fee of £500, the savings from a better interest rate can amount to hundreds — or even over a thousand pounds — during a typical 2-year fixed period alone. Brokers are especially valuable for first-time buyers, self-employed applicants, or anyone with complex circumstances. However, it's always worth comparing what your existing lender offers against what a broker finds. If you're unsure, speak to a qualified mortgage advisor for personalised guidance.

Do mortgage brokers charge a fee?

Some do and some don't. Around 44% of mortgage brokers charge a fixed fee, 29% charge a percentage of the loan, and a significant number offer their services completely fee-free (Mortgage Solutions, March 2026). Fee-free brokers earn their income through procuration fees (commission) paid by lenders. All brokers, whether they charge a fee or not, are required by the FCA to disclose their fee structure before you commit to using their services.

How much commission do mortgage brokers receive?

Mortgage brokers typically receive a procuration fee (commission) of 0.35% to 0.5% of the mortgage loan value, paid by the lender. On a £250,000 mortgage, this equates to between £875 and £1,250. This commission is paid by the lender and does not directly increase the interest rate you pay. Some brokers earn this commission in addition to a direct fee from you, while fee-free brokers rely on this commission as their sole source of income.

Are mortgage broker fees negotiable?

In many cases, yes. Mortgage broker fees are not set by regulation — each broker sets their own fee structure. You may be able to negotiate a lower fee if you have a straightforward case, a large mortgage, or are a returning client. Some brokers also offer reduced fees for first-time buyers. It's always worth asking, but remember that the cheapest broker isn't necessarily the best — the value of good advice often outweighs the fee itself.

Do you pay a mortgage broker upfront or on completion?

This varies by broker. Some charge an upfront fee when you instruct them or when they submit your application. Others charge on mortgage offer (when the lender formally approves your mortgage) or on completion (when the mortgage funds are released and the property purchase completes). A completion-based fee carries less risk for you — if the mortgage falls through, you typically won't owe the fee. Always ask your broker to confirm their payment terms in writing before you proceed.

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This guide was last updated on 11 March 2026. Mortgage rates and broker fees change regularly. For advice tailored to your personal circumstances, speak to a qualified mortgage advisor.

Mortgage118 is a trading name of Mattison Elm Ltd (Company No. 09831228), registered at 7 Bell Yard, London WC2A 2JR. Mattison Elm Ltd is authorised and regulated by the Financial Conduct Authority (FCA FRN: 876876).

If you're unhappy with the service provided by a mortgage broker, you have the right to complain. All FCA-regulated brokers must have a formal complaints procedure. If your complaint isn't resolved to your satisfaction, you can escalate it to the Financial Ombudsman Service free of charge.

Your home may be repossessed if you do not keep up repayments on your mortgage.