Do You Need a Mortgage Broker? UK Guide 2026

What Is a Mortgage Broker?

A mortgage broker — also called a mortgage adviser or mortgage intermediary — is a regulated professional who helps you find and apply for a mortgage. Rather than going directly to a bank or building society, you work with a broker who searches available products on your behalf, assesses your eligibility, advises on the most suitable option for your circumstances, and manages the application process.

In the UK, all mortgage advisers must be authorised and regulated by the Financial Conduct Authority (FCA). This regulatory oversight means they are legally required to provide advice that is suitable for your individual circumstances and to disclose how they are remunerated. They must also make clear the scope of the market they search — whether they cover the whole market, a limited panel of lenders, or a single lender only.

Mortgage brokers act as intermediaries between borrowers and lenders. They have direct relationships with lenders' business development managers, access to online mortgage sourcing systems that aggregate hundreds of products, and detailed knowledge of each lender's underwriting criteria — what each lender will and will not accept. This knowledge is often what makes the difference between a successful application and a rejection, particularly for borrowers with non-standard circumstances.

Types of Mortgage Broker

Not all mortgage brokers are equal in the range of products and lenders they can access. Understanding the distinction is important when choosing who to work with.

Tied Advisers (Single Lender)

A tied adviser works exclusively for one lender — typically a bank or building society's in-branch adviser. They can only recommend mortgage products from that single lender. If you walk into your bank and speak to their mortgage adviser, they are legally required to tell you they are tied to that lender and can only advise on that lender's range. The obvious limitation is that their products may not be the most competitive or most suitable for your circumstances. The potential advantage is convenience and, occasionally, preferential rates for existing customers.

Multi-Tied Advisers (Panel)

Multi-tied advisers can access mortgage products from a defined panel of lenders — perhaps 10 to 20 lenders. They are not whole-of-market, meaning they cannot search the entire mortgage market, but they have broader access than tied advisers. Some comparison websites operate this model, directing you to a limited range of partner lenders. Always check how many lenders a broker or service covers before proceeding.

Whole-of-Market (Independent) Brokers

A whole-of-market mortgage broker can search products from the entire mortgage market, including lenders that do not advertise directly to consumers. This is the broadest possible access and generally provides the best chance of finding the most competitive deal for your specific circumstances. Many whole-of-market brokers also have access to exclusive products negotiated directly with lenders, which are not available anywhere else. When selecting a broker, whole-of-market status is usually the most advantageous option.

How Mortgage Brokers Are Paid

Understanding broker remuneration removes any mystery about whose interests a broker serves. There are three main payment models, and a reputable broker will be transparent about which applies to them.

Commission from the Lender (Procuration Fees)

The majority of mortgage brokers in the UK receive a procuration fee paid by the lender when a mortgage completes. This fee is typically between 0.35% and 0.5% of the loan amount, paid by the lender from their margin. On a £250,000 mortgage, this equates to approximately £875 to £1,250, paid entirely by the lender with no direct cost to you. This is the most common arrangement and means many borrowers access professional mortgage advice at no direct cost to themselves.

A legitimate concern is whether commission-based brokers are incentivised to recommend higher-value mortgages or products that pay higher commissions. FCA regulation addresses this: brokers must demonstrate their advice is suitable for the client's needs, not influenced by remuneration. However, as a consumer, it is reasonable to ask your broker whether any lender pays higher commissions and whether this could affect their recommendation.

Direct Fees to the Client

Some brokers charge a direct fee to the client, either instead of or in addition to lender commissions. Fee-charging brokers typically charge between £300 and £500 for a straightforward residential mortgage case, rising to £500 to £1,500 or more for complex applications involving adverse credit, portfolio landlords, large loans, or unusual property types. Fees may be payable at application, at mortgage offer, or at completion — ask upfront.

Direct fees can actually align incentives better: a broker who is paid by you regardless of which lender they recommend has less potential conflict of interest than one relying entirely on lender commissions. Some of the most highly regarded specialist brokers charge fees precisely because they are genuinely independent and want to demonstrate it.

Fee-Based and Commission Combined

Some brokers charge both a client fee and receive lender commission. This is legal and must be fully disclosed. In this model, the total remuneration is the sum of both. For complex cases that require significant broker time and expertise, this combined model is not unreasonable. The key is transparency: always ask what the total remuneration will be before agreeing to proceed.

When You Should Use a Mortgage Broker

There are certain situations where using a mortgage broker is not just helpful — it is almost essential. In these circumstances, a broker's knowledge of lender criteria and their relationships with specialist lenders can be the difference between getting a mortgage and being declined.

Self-Employed Borrowers with Complex Income

If you are self-employed, a director of a limited company, a contractor, or have income from multiple sources, your mortgage application is inherently more complex. Different lenders assess self-employed income in very different ways. Some will use your salary and dividends; others will use net profit; others will look at total income across multiple years. Some require two years of accounts; specialist lenders may accept one year if the picture is otherwise strong. Without a broker who understands each lender's approach, you risk applying to the wrong lender and receiving a decline — which itself damages your credit file. A good broker will know exactly which lenders are sympathetic to your income structure before you submit a single application. Our affordability calculator can give you a starting estimate, but a broker is essential for the actual strategy.

Adverse Credit History

If you have missed payments, defaults, county court judgements (CCJs), debt management plans, individual voluntary arrangements (IVAs), or previous bankruptcy on your credit file, mainstream lenders will likely decline your application. However, a thriving specialist lending sector exists precisely for borrowers with imperfect credit histories. Specialist lenders price their products to reflect the additional risk, but they do offer mortgages. A broker specialising in adverse credit will know which lender is most likely to accept your specific credit profile, what rate and loan-to-value ratio is realistic, and how to present your case most favourably. Attempting this without a specialist broker is challenging.

Large or Complex Loans

For mortgages above £500,000 — and especially above £1 million — the market is quite different. Private banks, wealth managers, and specialist lenders offer bespoke products that are largely inaccessible without broker relationships. High-net-worth individuals with complex asset structures, multiple income streams, or international income need brokers who operate in this space daily. Even for large loans in the £500,000 to £1 million range with straightforward income, broker relationships can unlock better terms than anything available direct.

First-Time Buyers Navigating the Process

If you are buying your first home, the mortgage process is one of many new and complex elements you are managing simultaneously. A broker can guide you through the entire process, explain unfamiliar terminology, help you understand how much you can realistically borrow using our mortgage calculator alongside their own assessments, advise on government schemes such as the Mortgage Guarantee Scheme, identify which lenders are most generous to first-time buyers, and manage the application while you focus on the rest of the purchase. For most first-time buyers, the value of this guidance significantly outweighs any broker fee.

Unusual Property Types

Not all properties are equal in lenders' eyes. Flats above commercial premises, high-rise flats, properties with short leases (typically below 70 years remaining), listed buildings, properties with non-standard construction, former local authority flats, and studio flats below a certain square footage can all trigger automatic declines from mainstream lenders. Specialist lenders exist for each of these categories, but you need a broker who knows the market to identify them. Applying blind to the wrong lenders wastes time, costs you credit enquiries, and can complicate future applications.

Non-Standard Construction

Properties built from timber frames, concrete panels, steel frames, thatched roofs, or other non-standard materials are declined by many standard lenders as they are considered harder to sell in the event of repossession. Specialist lenders assess these properties on their merits, but they are harder to identify without broker knowledge. If you are buying a non-standard construction property, a broker with experience in this area is essentially mandatory.

When Going Direct to a Lender Can Work

A broker is not the right choice for everyone in every situation. There are circumstances where going directly to a lender is perfectly reasonable and may even be advantageous.

If you are an existing customer of a bank and have a straightforward financial profile — permanent employment, a clean credit history, a standard residential property, and a loan-to-value below 75% — your bank may offer a highly competitive product to retain your business. Loyalty rates and existing customer deals can occasionally match or beat broker-sourced products, and the application process is simpler when the lender already holds your financial history.

If you are remortgaging to a new deal with your existing lender (a product transfer), you almost certainly do not need a broker. Product transfers are simple, fast, and involve no legal work. However, it is always worth checking a broker's opinion on whether the product transfer rate is competitive — many will provide this comparison for free without obligation.

Borrowers who are financially sophisticated, familiar with the mortgage market, have simple income structures, and have the time to research deals thoroughly can often source and apply for mortgages without a broker. The risk is not knowing what you do not know — lenders' criteria changes regularly, and a deal that looks attractive on rate may have conditions attached that make it unsuitable for your situation.

How to Find a Good Mortgage Broker

Not all mortgage brokers are equally skilled, experienced, or well-suited to your circumstances. Here is a structured approach to finding one you can trust.

Check the FCA Register

Any mortgage broker operating legally in the UK must be authorised by the Financial Conduct Authority. Visit register.fca.org.uk and search for the broker's firm name or the individual adviser's name. Check their status shows as "Authorised" and that their permissions include mortgage broking. Never use an unregistered broker — this is a criminal offence on their part and offers you no consumer protection.

Verify Qualifications

The recognised qualification for mortgage advisers in the UK is the Certificate in Mortgage Advice and Practice (CeMAP), awarded by the London Institute of Banking and Finance. This is the industry standard and is the minimum qualification for giving mortgage advice. More experienced advisers may hold additional qualifications or be members of professional bodies such as the London Institute of Banking and Finance (LIBF) or the Chartered Insurance Institute (CII). Ask your broker about their qualifications upfront.

Read Reviews and Seek Recommendations

Personal recommendations from trusted friends or family who have recently used a broker are often the most reliable guide. Online reviews on Google, Trustpilot, and Vouched For (which specialises in financial adviser reviews) also provide useful intelligence. Look for consistent themes in feedback — both positive and negative — rather than relying on any single review. Be cautious of brokers with very few reviews or suspiciously uniform five-star ratings.

Online Brokers vs Local Brokers

The mortgage broking market has evolved significantly with the emergence of digital-first brokers. Online and app-based brokers include:

• Habito — one of the UK's pioneer digital mortgage brokers, whole-of-market, no broker fee for standard cases.
• Trussle (now part of Vita) — digital broker with online application process, aimed at straightforward cases.
• L&C Mortgages — one of the UK's largest fee-free whole-of-market brokers, operating online and by phone.

Online brokers work well for straightforward cases where the application is clear-cut. For complex situations — adverse credit, self-employed with unusual income structures, specialist properties — a local broker with genuine specialist expertise may provide better outcomes. The best local brokers have deep knowledge of specific lender criteria built over years of daily practice, and some maintain relationships with lenders' underwriters that allow them to navigate tricky cases more effectively than a digital platform.

Questions to Ask Your Mortgage Broker

Before committing to any broker, ask these questions to assess their suitability and ensure full transparency:

• Are you authorised and regulated by the FCA? What is your firm's FCA reference number?
• Are you whole-of-market, multi-tied, or tied to a single lender?
• How do you charge? Do you charge a client fee, receive lender commission, or both?
• What is the total fee I should expect to pay, and when is it payable?
• What qualifications do you hold? Do you hold CeMAP or equivalent?
• How much experience do you have with cases like mine?
• How many lenders do you actively work with?
• Will I deal with you personally throughout, or will my case be passed to another adviser?
• How will you communicate with me, and how quickly can I expect responses?
• What happens if my application is declined?

Typical Broker Fees in 2026

To set your expectations, here is a realistic breakdown of what mortgage brokers charge across different case types in the UK in 2026:

Remember that for standard cases, many of the UK's largest and most reputable brokers charge no fee at all, being remunerated entirely through lender commissions. This means professional mortgage advice costs you nothing directly in many cases, making the decision to use a broker relatively low-risk from a cost perspective.

Frequently Asked Questions