Mortgage Broker Fees UK: Fee-Free vs Fee-Charging, What to Expect (2026)
Not all mortgage brokers charge in the same way, and the fee model doesn't tell you how good the advice is. Some charge you nothing directly. Others charge a flat fee, a percentage of the loan, or a fee split across the process. This guide explains how each model works and what's typical in the UK right now, so you know what questions to ask before you commit to one.
How mortgage brokers actually get paid
Most UK mortgage brokers are paid, at least in part, by the lender. When a broker arranges a mortgage, the lender usually pays them a "procuration fee" for doing so — this happens whether or not the broker also charges you a fee directly. On top of that, some brokers charge you, the borrower, a separate fee for their advice and work. Whether a broker charges you directly, and how much, varies firm by firm and sometimes case by case.
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Build My Free PlanFee-free brokers
A fee-free broker doesn't charge you anything directly — they're paid only through the fee the lender gives them. According to Financial Conduct Authority data reported in late 2025, over half of UK mortgage brokers charge no fee to the client, a share that's stayed fairly stable over the previous couple of years. Fee-free is common, not unusual, and it's worth asking directly whether that applies to your specific case, since some brokers who are generally fee-free still charge for complex cases (for example, self-employed applicants, poor credit, or buy-to-let).
Fee-charging brokers: fixed, percentage or staged
Where a broker does charge you directly, it's usually one of three structures: a fixed fee agreed upfront regardless of the size of your mortgage; a percentage-based fee calculated as a share of the amount you're borrowing, or sometimes of the property's price; or a staged fee, part paid upfront and part on completion, or split across different stages of the application.
A March 2026 industry survey of around 2,000 recent buyers and remortgagors (commissioned within the broker sector, so treat it as directional rather than independent) found fixed fees were the most common choice, chosen by 44% of those who paid a fee, with 29% on a percentage-of-loan basis and 19% on percentage-of-property-value. The same survey found the average fee paid had risen to £643 for home purchases and £623 for remortgages, up sharply on the year before — though that figure only covers people who paid a broker fee, not the fee-free majority.
What fees actually look like right now
| Fee type | How it works | What recent data shows (2025–2026) | What to check |
|---|---|---|---|
| No fee | Broker paid only by the lender's procuration fee | FCA data reported in December 2025 put this at just over half of brokers | Ask if that holds for your situation — complex cases sometimes cost extra |
| Fixed fee | Flat amount agreed before you proceed | Most common fee amounts reported in 2026 clustered around £500–£700, with over half of fee-paying borrowers in that band | Ask whether it's payable even if your mortgage doesn't go through |
| Percentage of loan or property value | Fee scales with the size of your mortgage or purchase | Chosen by roughly a third to half of fee-paying borrowers surveyed in 2026, depending on the basis used | Ask for a cash estimate upfront, not just the percentage, so you can compare it to a fixed fee |
| Staged fee | Split between application and completion | A smaller share of cases (around 7% in the 2026 survey) | Check what you owe if the purchase falls through partway |
Questions worth asking before you choose
Ask whether the broker is "whole of market" or works from a smaller panel of lenders, since that affects how much choice they're actually giving you regardless of fee model. Ask exactly when any fee is payable, and whether any of it is refundable if your purchase doesn't complete. And ask for the fee in pounds, not just as a percentage, so you can compare it properly against other brokers quoting a flat amount.
A broker should set all of this out clearly, in writing, before you commit to using them — if a fee structure isn't being explained plainly, that's worth treating as a flag in itself, regardless of whether the fee is high or low.
Already found a property and want to make sure the rest of your move stays on track? See our guide on "How Much Can You Borrow for a Mortgage? UK Income Multiples Explained (2026)" to sense-check your numbers, and "How to Get a Mortgage in Principle UK 2026 — Complete Guide" if you haven't started that step yet. If your fixed deal is coming to an end rather than starting fresh, our "Remortgaging UK: What It Actually Costs and When It's Worth It (2026)" guide covers what switching typically costs instead.
The bottom line
Whether a broker charges you a fee says very little on its own about the quality of advice you'll get — plenty of fee-free brokers do excellent work, and plenty of fee-charging ones are worth every penny for a complicated case. What matters is knowing which model you're being offered, what it would actually cost you in pounds, and whether the broker is checking a wide range of lenders or a narrow one. Ask those three things before you commit, and you'll know exactly what you're paying for.
This guide is general information, not financial advice.
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