How do mortgage brokers get paid?
A mortgage broker can give you peace of mind in knowing the mortgage you get is recommended by an expert who knows what’s best for you. But did you know that you don’t actually have to pay for a broker’s help?
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Author - Aidan Darrall Editor - Stuart Bowman
Last reviewed on 11th February 2025
About mortgage broker fees
All mortgage brokers get paid for their mortgage advice, but how that cost is passed onto you varies. How much your mortgage broker charges for their advice depends on their fee structure. They could:
Charge you a flat fee of, on average, £500 upfront
Charge you a fee based on how much you’re borrowing. For example, if you’re borrowing £180,000 they might charge a 1% fee – which amounts to £1,800
Choose not to charge you at all. All brokers charge the lender a commission for bringing them your business, but some brokers decide not to ask for a fee from their customers in addition to the lender’s procuration fee
How Mojo mortgage brokers make money
At Mojo Mortgages, we won’t charge you a fee when you work with your mortgage advisor. Instead, we earn money from lenders who pay us a commission when we secure your mortgage with them. Find out more about how we stay free for our customers.
Ready to get started on your mortgage journey? We compare thousands of mortgage deals across a wide range of lenders, so you can get your expert-recommended mortgage in principle sorted in no time.
How do fee-free mortgage brokers make money?
You’ve probably sussed it out by now, but a fee-free model can be great for the customer because it won’t cost you anything. Instead, a lender will pay your broker a procuration fee once your mortgage completes.
These fees are still determined by how big the loan is, but the percentage a broker earns tends to be around 0.35 to 0.45%. Your mortgage broker must declare how much, if anything, they’ll earn from the lender.
Brokers are regulated by the Financial Conduct Authority (FCA), so they shouldn’t let the amount of commission they can earn affect their advice to you. It could cost them their licence, after all.
Double dipping, and how to avoid it
Some brokers will charge you a fee for their advice and then still take a commission from the lender when they secure you a mortgage. Some people call this ‘double dipping’.
Again, brokers who do this should tell you upfront how they make their money, so you’ll know ahead of time. It’s up to you whether you think their service is worth paying for.
FAQs
Some brokers won’t charge you anything at all, while others may charge over £1,000 for using their services.
Mortgage broker fees vary depending on the type of advisor you work with:
Fee-free brokers don’t charge the customer anything at all
Brokers that charge a flat fee typically charge around £500 for their services, though the fee could be more expensive if you have a more complex case
Some brokers charge a percentage fee (usually between 0.35%-1%) of your mortgage value so how much you pay your broker will depend on the size of your mortgage
Obviously, the benefit of choosing a fee-free broker is that it won’t cost you anything to get their expert advice. This can be really helpful if you’re trying to keep home moving costs down (and, let’s face it, who isn’t?)
A broker’s fee structure should make no difference to the recommendations you receive. It shouldn’t matter whether you choose a fee-free broker or you’re looking for a smaller mortgage - your broker should always act in your best interest and provide the same level of service to every customer.
That said, not all brokers are created equal. Regardless of how much they charge, it’s important to find a reliable, trustworthy broker to support you throughout your mortgage journey. We’ve put together a handy guide to help you choose the right mortgage broker for you.
A mortgage broker’s commission is typically between 0.35% and 0.4% of the total mortgage. So, if you take out a mortgage for £200,000, your broker will likely receive between £700-£800 from the lender.
If you choose a fee-free mortgage broker, you won’t have to pay them for their advice at all as they will charge the lender commission instead.
However, if your broker does charge a fee for their services, you’ll need to pay them according to their terms. Some brokers request payment upfront before they secure you a mortgage offer. Others will ask for payment once they have secured you a mortgage offer, or upon completion if you decide to proceed with their recommendation.
Always get in writing exactly how much you’ll be charged, when you’ll be expected to pay your broker’s fees and how you’ll pay any fees before going ahead, to make sure you’re happy with the terms.
Yes! You should always ask your broker about their fee structure before you start working with them, so you’ll know whether or not to expect any charges. Trustworthy brokers will be happy to answer any questions you have, and should be fully transparent about their fees.
We go into more detail about the questions you should ask your broker here, to help you make sure you’re choosing the right broker for you.
You won’t be charged for insurance advice when you speak to one of Mojo Mortgages’ protection advisors. Our protection advice works in a similar way to our mortgage advice. If you choose to go ahead with insurance cover, such as life insurance or mortgage protection insurance, the cover provider pays us commission. So our advisory service is completely free to our customers.
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