What Is a Mortgage Broker?

A mortgage broker (also called a mortgage adviser or intermediary) is a professional who helps you find and secure a mortgage. They assess your financial situation, search through available mortgage products, recommend suitable options, and handle much of the application paperwork on your behalf. Brokers must be authorised and regulated by the Financial Conduct Authority (FCA).

Why using a broker matters

The UK mortgage market has hundreds of products from dozens of lenders, and navigating it alone can be overwhelming. A good broker has access to deals from across the market, including some that are only available through intermediaries and not directly from lenders. They understand each lender's specific criteria, which can vary significantly, and can match you with a lender likely to accept your application.

This is particularly valuable if your circumstances are not straightforward -- for example, if you are self-employed, have complex income, a small deposit, or an adverse credit history. A broker who knows which lenders are more flexible in these areas can save you from wasted applications and unnecessary credit checks.

Whole of market vs tied

"Whole of market" brokers can recommend products from any lender, giving you the broadest choice. "Tied" or "restricted" brokers only recommend products from a limited panel of lenders. Always ask which type your broker is before engaging their services.

How brokers are paid

Brokers are typically paid in one of two ways: a fee charged directly to you (often £300 to £500, sometimes more for complex cases), a commission paid by the lender when your mortgage completes, or a combination of both. Fee-free brokers are common and are paid entirely by lender commissions. There is no evidence that fee-charging brokers provide a better service, so choose based on reputation and recommendations.

Important caveats

While brokers access a wide market, no single broker covers every lender. A few lenders, including some building societies, only deal directly with customers. If you have a specific lender in mind, check whether they work with brokers. Also remember that a broker's recommendation should be in your best interest, but it is always sensible to do some of your own research to verify their advice.

Mortgage Broker