See local mortgage brokers rates for 2024

Find a mortgage broker with our partner Unbiased.

HaMuch is Excellent

Mortgage broker rates can be tricky to understand, as there are a few ways that they tend to charge. In this guide, we’ll explain mortgage broker fees, what to ask your mortgage broker before applying for a mortgage with them and we’ll answer some of the most commonly-asked questions.

What is the standard fee for a mortgage broker?

The standard fee for a mortgage broker depends on how they charge: via a fixed fee or a percentage of your loan amount.

Fixed fees average at around £500, while brokers that charge a percentage usually charge between 0.3-1% of the loan amount. This means that you could end up paying more than the average broker fee if you need a large mortgage on a high-value property. Make sure you ask for a mortgage broker’s costs in writing before you go ahead with them to ensure you understand exactly what’s involved.

In almost all cases, mortgage brokers will be paid commission by your lender once your mortgage has been approved. That means that there are many mortgage brokers that will charge you no fees as they’ll collect their payment from your lender. Typically, the commission a mortgage broker is paid is around 0.35% of your loan size, so it could be a sizeable amount. Your mortgage broker should always be upfront about how they receive commission, and it should be on the mortgage illustration they give you when they make your application for you.

Is it worth paying a mortgage broker?

Quite often, yes – it is worth paying a mortgage broker. If you don’t have a fee-free broker available in your area or a charging mortgage broker made a good impression on you, it’s often likely that you’ll make the broker fee back on savings on your mortgage interest rate anyway.

Using a mortgage broker that has access to the entire mortgage market can save you more on your monthly repayments than if you simply took the interest rate your bank gave you – possibly far more than you paid your broker. Plus, if you have a poor credit history or you’re unsure on what income to declare on your mortgage application, trying to do it yourself could result in you getting rejected, which could cost even more money if you have to pull out of a house sale.

So, while using a fee-free broker would be the most cost-effective option, it still makes sense overall to pay a mortgage broker if you can’t find a free one.

What to ask your mortgage broker

1. Do you have access to the entire market?

Some mortgage brokers are tied to a certain lender or a certain panel of lenders. That means that the broker can only help you apply for a mortgage with those suppliers, which could mean that you end up missing out on a better interest rate. Ideally, you should choose a mortgage broker with access to the entire market – they used to be called ‘whole-of-market’ brokers – so they can search through tens to hundreds of lenders to find you the best interest rate.

2. Are you qualified?

Mortgage brokers are essentially financial advisors that specialise in mortgages. Make sure you’re speaking to a qualified mortgage advisor – the most popular qualification is CeMAP. They also need to be authorised by the Financial Conduct Authority and have a duty of care to only recommend products that are suitable for you. You can check that your mortgage broker is authorised on the Financial Services Register.

3. Do you charge a fee?

It’s important to ask your broker whether they charge a fee, and if they do, how they charge it. Some mortgage brokers charge a fee upfront from consultation (to protect them from customers changing their minds), whereas others only take a fee on arrangement of a mortgage. Make sure that you understand whether you will pay a fixed fee, a percentage of your loan amount or nothing at all – and get it in writing so you can refer to it later.

Do mortgage brokers offer better rates than banks?

In some cases, mortgage brokers can offer better rates than banks. They often have access to deals that aren’t available if you go direct to the lender, so it’s worth speaking to a mortgage broker and asking if they have access to any exclusive products at the moment.

Even if they don’t have any exclusive rates to offer, they can still help you find a great mortgage. While mortgage brokers don’t necessarily offer better rates than banks, brokers that aren’t tied to a certain lender can access most of the market. That means that they can find the best interest rate for you from a range of banks, rather than just one.

Are mortgages more expensive through a broker?

No – mortgages certainly aren’t more expensive through a broker, especially when you use a broker that has access to all lenders. If you choose a mortgage broker that only has access to a certain panel of lenders, then you might not get the lowest interest rate available, so it can be more expensive. But if you use a broker that has access to most of the market, then you should get the best interest rate available to you according to your financial situation.

What is a lifetime broker fee?

A lifetime broker fee is a one-time fee you pay to a mortgage broker who will then offer you mortgage advice for your subsequent mortgages. Brokers will charge differently for this – some may arrange mortgages for multiple properties, for example your main home and any buy-to-let properties, whereas others will stipulate that the fee only covers your main property. The average fixed mortgage broker fee is around £500, but brokers may charge more than this for a lifetime agreement. Remember to read the terms and conditions carefully before you agree to paying a lifetime broker fee.

Rates for other trades

Equity release estimated monthly repayment based on average house prices 2023
Mortgage Broker estimated month payment base on local average house prices, 75% LTV repaid over 25yrs source: uswitch - rate 1.00%
Location in UKCost per month
Equity release near Waltham Forest£1449
Equity release near Derbyshire£676
Equity release near Maldon£1217
Equity release near Broxtowe£727
Equity release near West Midlands Region£726
Equity release near Lancashire£541
Equity release near West Northamptonshire£851
Equity release near West Lancashire£659
Remortgaging estimated monthly repayment based on average house prices 2023
Mortgage Broker estimated month payment base on local average house prices, 75% LTV repaid over 25yrs source: uswitch - rate 1.00%
Location in UKCost per month
Remortgaging near Waltham Forest£1449
Remortgaging near Derbyshire£676
Remortgaging near Maldon£1217
Remortgaging near Broxtowe£727
Remortgaging near West Midlands Region£726
Remortgaging near Lancashire£541
Remortgaging near West Northamptonshire£851
Remortgaging near West Lancashire£659
Fixed rate mortgage estimated monthly repayment based on average house prices 2023
Mortgage Broker estimated month payment base on local average house prices, 75% LTV repaid over 25yrs source: uswitch - rate 4.80%
Location in UKCost per month
Fixed rate mortgage near Waltham Forest£2202
Fixed rate mortgage near Derbyshire£1027
Fixed rate mortgage near Maldon£1850
Fixed rate mortgage near Broxtowe£1105
Fixed rate mortgage near West Midlands Region£1103
Fixed rate mortgage near Lancashire£822
Fixed rate mortgage near West Northamptonshire£1294
Fixed rate mortgage near West Lancashire£1002
Tracker mortgage estimated monthly repayment based on average house prices 2023
Mortgage Broker estimated month payment base on local average house prices, 75% LTV repaid over 25yrs source: uswitch - rate 5.25%
Location in UKCost per month
Tracker mortgage near Waltham Forest£2303
Tracker mortgage near Derbyshire£1074
Tracker mortgage near Maldon£1935
Tracker mortgage near Broxtowe£1156
Tracker mortgage near West Midlands Region£1154
Tracker mortgage near Lancashire£860
Tracker mortgage near West Northamptonshire£1353
Tracker mortgage near West Lancashire£1048
Buy to let mortgage estimated monthly repayment based on average house prices 2023
Mortgage Broker estimated month payment base on local average house prices, 75% LTV repaid over 25yrs source: uswitch - rate 5.00%
Location in UKCost per month
Buy to let mortgage near Waltham Forest£2247
Buy to let mortgage near Derbyshire£1048
Buy to let mortgage near Maldon£1888
Buy to let mortgage near Broxtowe£1127
Buy to let mortgage near West Midlands Region£1125
Buy to let mortgage near Lancashire£839
Buy to let mortgage near West Northamptonshire£1320
Buy to let mortgage near West Lancashire£1022
Interest Only Mortgage estimated monthly repayment based on average house prices 2023
Mortgage Broker estimated month payment base on local average house prices, 75% LTV repaid over 25yrs source: uswitch - rate 4.00%
Location in UKCost per month
Interest Only Mortgage near Waltham Forest£2029
Interest Only Mortgage near Derbyshire£946
Interest Only Mortgage near Maldon£1704
Interest Only Mortgage near Broxtowe£1018
Interest Only Mortgage near West Midlands Region£1016
Interest Only Mortgage near Lancashire£758
Interest Only Mortgage near West Northamptonshire£1192
Interest Only Mortgage near West Lancashire£923