Buying a new home is a costly business. Aside from the main expense of the house itself, it can seem like you’re forever forking out for extra costs, including stamp duty, arrangement and valuation fees, and mortgage broker fees. It is natural to want to keep costs to a minimum, but a mortgage broker often holds the key to success, (and some even come for free).

Want to take a look at your mortgage options? ClearScore connects you to L&C, a fee-free mortgage broker. See your options.

Your home may be repossessed if you do not keep up repayments on your mortgage.

1. What exactly is a mortgage broker and what do they do?

A qualified mortgage broker is basically a financial advisor that specialises in mortgages. They work to find the right mortgage with rates to suit your budget. They can talk you through your options, and their knowledge of the housing market means they can identify lenders and deals that may suit your circumstances, subject to each lender’s own checks. Mortgage brokers have a duty of care towards you, meaning they have to be able to justify any recommendations they make.

Mortgage brokers will base their mortgage recommendations on your individual circumstances. Some of the factors they use include:

• The size of your deposit

• Your monthly repayment preferences

• Interest rates

• Personal information such as your credit history and outgoings

This information helps them to see what mortgage offers you’ll be eligible for and how much you’ll be able to borrow, as lenders weigh your income, existing borrowing and affordability alongside your credit score.

2. Are all mortgage brokers the same?

Mortgage brokers come in different shapes and sizes. But there are two main types:

Tied or multi-tied mortgage brokers

This type of broker is either tied directly to one lender or a group of lenders. So they are much more limited in the type of mortgage that they can recommend.

On the flip side though, their close links to lenders often means that they can offer you exclusive deals and incentives. But they won’t be able to offer you certain options you may find elsewhere, even if they are better, because they're tied to a select range of lenders.

'Whole of market’ mortgage brokers

A ‘whole of market’ broker covers much more of the market. They are usually independent mortgage advisors with no links to any specific mortgage lender. This means that you are not limiting yourself to a single lender or group of lenders that a ‘tied’ broker works with. You’ll have a much greater pool of mortgage options to choose from, and because they aren’t tied to particular lenders, their advice can cover a comprehensive range of mortgages from across the market.

It's worth noting that even 'whole of market' brokers don't tend to cover absolutely every option in the market. But to get the name 'whole of market', they do have to cover enough options to be representative of the whole market, so you'll still be getting a wide range of options.

3. What are the advantages of using a mortgage broker?

You can go directly to mortgage lenders yourself, but you could miss out on some of the advantages a broker brings:

• They are trained, qualified professionals with extensive knowledge of their field. They are best placed and duty-bound to help you in your mortgage buying decision, meaning they can help make sure you don't end up with an unsuitable mortgage. And if something goes wrong, you can complain to the firm first and then refer it free of charge to the Financial Ombudsman Service (FOS).

• They save you time by comparing the market for you and they can help you with the ‘red tape’ side of purchasing a home.

• They may help you save money. Some brokers have access to a wide panel of lenders and may find deals you would struggle to find alone, while tied brokers may have access to exclusive deals. There is no guarantee of a better rate, as any offer depends on the lender's own checks and affordability assessment.

Mortgage broker vs going direct to a lender: which is right for you?

Whether you should use a mortgage broker or go direct to a lender depends almost entirely on how straightforward your finances are. If you're employed on a stable salary with a clean credit file and a decent deposit, going direct to a high street lender can be quick and perfectly effective. If there's anything unusual about your income, your credit history or the property itself, a broker may be able to find you more options - and help you avoid applications that are likely to be declined and leave marks on your credit report.

What 'direct-only' deals are

Some lenders reserve a portion of their range for borrowers who apply through their own branches, call centres or websites. These direct-only products are never visible to brokers, even 'whole of market' ones, and they can occasionally be a little cheaper. Large banks and building societies such as HSBC, Nationwide, Barclays and Lloyds have all offered direct-only deals at various points. The catch is that you can only see one lender's range at a time, so you have no way of knowing whether the deal is genuinely competitive without checking several yourself.

When going direct usually works fine

Going direct tends to suit borrowers with PAYE income from a single employer, at least two years in the same role, no recent missed payments, and a standard freehold house or a straightforward leasehold flat. It also works well for a product transfer - where you move to a new rate with your existing lender at the end of your fixed term. Product transfers usually skip the affordability assessment and the valuation, so the process is fast and there's little for a broker to improve on.

When a broker earns their keep

A broker becomes genuinely valuable when lenders' criteria start to diverge. That includes self-employed applicants and company directors, contractors paid on a day rate, anyone with defaults, CCJs or a recent payday loan, applicants using a gifted deposit, borrowers at 90% or 95% loan-to-value, buy-to-let and limited company purchases, older borrowers stretching a term past retirement, and non-standard properties such as flats above shops, ex-local authority blocks or homes with spray foam insulation. In these cases the difference between lenders isn't the headline rate - it's whether they'll say yes at all.

Advice versus execution-only

When a broker or a lender's qualified adviser recommends a mortgage, that's a regulated advised sale. They must assess suitability and can be held to account if the recommendation was wrong for you. If you pick a product yourself online without any advice, that's an execution-only sale, and you give up the right to complain that the mortgage was unsuitable. You keep other protections, but the suitability one is the most valuable if things go wrong later.

Can you do both?

Some people choose to compare intermediary (broker) options with direct-only deals. A broker can show a wide range of the market, while checking a couple of direct-only lenders yourself can be a useful comparison. Consider your own circumstances and, where appropriate, seek regulated mortgage advice.

If you'd like to see what you're likely to be eligible for before you decide, ClearScore connects you to L&C, a fee-free mortgage broker. See your options.

4. Is there anything I should be wary of?

Whether you opt for a tied or 'whole of market' broker, you will usually have to pay for their services.

Most tied brokers will be paid through commission, this will be a percentage of the mortgage loan you receive. This is usually around 0.35% to 0.45% of the loan, and it's paid by the lender rather than by you. You'll pay this directly to the lender, and they'll also receive commission from the lender themselves. Most independent brokers charge a flat fee, typically £300 to £700, with around £500 being a common figure. Be sure to ask brokers how you pay them. They must be completely transparent, telling you how much and what fee structure they use.

A number of fee-free brokers have begun to emerge. ClearScore connects you to L&C, a fee-free mortgage broker. (Simply login to see your options and arrange a chat).

You should also watch out for cross-selling from some brokers eager to push other services on you, such as insurance. Be wary of estate agents who insist you use ‘their’ broker. You don’t have to, in fact, you don't have to use a broker at all. Some lenders offer exclusive deals if you go direct, so comparing with other brokers is in your best interest.

Mortgage broker fees explained: what you'll actually pay in 2026

Most UK mortgage brokers now charge somewhere between £300 and £600 as a flat fee, some charge a percentage of the loan (typically 0.3% to 1%), and a significant number charge you nothing at all. Every broker must set out their charges in writing before you commit, so you should never be surprised by a bill. Here's how the different models work and what they mean for your pocket.

Fee-free brokers: how they get paid

A fee-free broker takes no money from you. They're paid entirely by the lender through a procuration fee once your mortgage completes. 'Free' really does mean free to you in this case - the lender's payment isn't added to your interest rate or loan balance, and it's the same whether you go through a broker or apply direct. The one thing to check is scope: ask whether they cover the whole of the market and how many lenders they can place business with, because a fee-free service that only has ties to a handful of lenders is a narrower search.

Flat-fee brokers: range and timing

A flat fee is a fixed amount regardless of the size of your mortgage, usually £300 to £600, with specialist advisers charging up to £1,000 or more for complicated cases. When you pay varies and matters a great deal. Some brokers take the fee upfront before any work starts, some take it when your mortgage offer is issued, and some only invoice on completion. Payment on offer or completion is far better for you, because you're only paying once the broker has actually delivered something.

Percentage-of-loan fees

A percentage fee scales with your borrowing, so 0.5% is £750 on a £150,000 mortgage but £2,000 on a £400,000 one. Percentage models can look cheap on a small loan and become expensive quickly on a larger one. If a broker quotes a percentage, ask them to convert it into a pounds figure for your actual loan amount before you agree to anything.

What is a procuration fee?

A procuration fee - often shortened to 'proc fee' - is the commission a lender pays a broker for introducing your business. It's generally around 0.35% to 0.4% of the loan, so roughly £700 on a £200,000 mortgage. Crucially, it is paid by the lender out of its own margin and is not added to your bill, your rate or your balance. Your broker must disclose the amount they'll receive, and because proc fees are broadly similar across mainstream lenders, they shouldn't skew the recommendation you get.

Fees you'll pay either way

Broker charges sit on top of costs you'd face regardless of how you apply: a product or arrangement fee charged by the lender (commonly £999 to £1,499, sometimes addable to the loan), a valuation fee (often free, otherwise £150 to £400), conveyancing and legal costs, and searches. Stamp duty applies separately depending on the price and whether you're a first-time buyer.

When a paid broker is worth it

If you're employed, have a clean credit file and a 15% deposit or more, a fee-free broker may well be able to find you a similar deal to a paid one. Paying is more defensible when your case needs real legwork: self-employment with one year's accounts, contractor income, defaults or CCJs, buy-to-let and portfolio landlords, limited company structures, or an unusual property. In those situations a specialist's fee may prove worthwhile, though any approval still depends on the lender's own checks and affordability assessment.

ClearScore connects you to L&C, a fee-free mortgage broker, so you can see what's available without paying for advice. See your options.

5. How do I choose the right mortgage broker for me?

• Ask people you trust. A good recommendation goes a long way when it comes to something as important as your mortgage broker. You might want to ask friends and family that have previously bought their own home about their own experience with brokers and if they have any recommendations.

• Use your connections. Your estate agent usually knows mortgage brokers from working in the same area, so asking if they recommend anyone can be worthwhile. Banks have their own mortgage advisors, so you should talk to one where you currently bank. They know your financial situation so they can quickly tell you your options with them (but only with them).

• Look online. You can use the website Unbiased to search for local brokers and advisors. You can search locally or look for experts based on the type of advice you need (so whether you're a first-time buyer or looking into buy-to-let, for example).

• Don't just stick to the high street. Many new brokers focus their business on the internet, so if you only search offline you may miss out on potential options. They can often be cheaper too. For example, Habito, Trussle and L&C (via ClearScore) are all online brokers offering free services.

• Check the credentials. A broker should be fully qualified. To check, you can search the FCA's Financial Services Register, which lists every firm authorised to advise on and arrange mortgages. Before settling on a broker, it could be a good idea to compare them first. Speak to someone from each of the brokerages you are considering, before picking.

It's important to think of the long-term when considering a mortgage broker. Buying a home is usually the most expensive purchase in our lifetimes, so it makes sense to make the most informed decision possible.

Ready to speak to a broker? On ClearScore (a credit broker, not a lender), you can see what sort of mortgages you're eligible for, and arrange a chat with an expert. See your options now.

What happens when you use a mortgage broker: the process step by step

Using a mortgage broker follows a well-worn path: an initial fact-find, a document check, a Decision in Principle, a recommendation, a full application, and then the offer. From your first conversation to a mortgage offer typically takes two to six weeks, though completion depends on the chain and the conveyancing. Knowing what happens at each stage makes the whole thing far less daunting.

Step 1: The initial fact-find

Your first appointment usually lasts 45 minutes to an hour and can be by phone, video call or in person. The broker will ask about your gross and net income, any bonus, overtime or commission, how long you've been in your job, your deposit and where it's coming from, your credit commitments (loans, credit cards, car finance, buy now pay later), childcare and maintenance payments, and your monthly outgoings. They'll also ask what matters most to you - the lowest monthly payment, the shortest term, the flexibility to overpay, or certainty over a longer fixed rate.

Step 2: Documents to have ready

• Photo ID - passport or driving licence - plus proof of address such as a utility bill or council tax statement.

• Your last three months' payslips and your most recent P60 if you're employed.

• Two to three years of SA302 tax calculations and matching tax year overviews, or accounts prepared by a qualified accountant, if you're self-employed.

• Three to six months of bank statements for every current account you use.

• Proof of deposit - savings statements, an ISA statement, or a gifted deposit letter from the family member providing the funds.

• Details of any existing mortgage if you're remortgaging, including the current balance, rate and end date.

Step 3: Decision in Principle

A Decision in Principle (also called an Agreement in Principle or DIP) is a lender's provisional indication of how much it would lend you. It usually takes minutes to obtain and lasts 30 to 90 days. Many lenders run a soft credit check for a DIP, which is visible only to you and has no effect on your credit score. Some run a hard check, which leaves a footprint others can see. Ask your broker which type the lender uses before they proceed - a good broker will steer you away from unnecessary hard searches. Estate agents will often want to see a DIP before accepting your offer on a property.

Step 4: The recommendation and your suitability report

Your broker will come back with a specific product from a specific lender and explain why. You're entitled to a written suitability report - sometimes called a recommendation letter - setting out the reasons for the choice, the rate, the term, the fees, the total cost over the deal period, and any early repayment charges. Read it properly. If the reasoning doesn't match what you told the broker mattered to you, say so before you proceed.

Step 5: Full application, valuation and underwriting

Once you're happy, the broker submits the full application and your documents to the lender. The lender instructs a valuation of the property - usually a basic desktop or drive-by valuation, which is about the lender's security rather than the condition of the house. An underwriter then reviews everything and may raise queries, asking for an explanation of a large transaction on a bank statement or an extra payslip. Your broker handles these queries on your behalf, which is where a lot of the practical value sits.

Step 6: Offer to completion

A formal mortgage offer typically arrives two to four weeks after the full application, and offers usually stay valid for three to six months. Purchases then move at the pace of the conveyancing and the chain, commonly eight to sixteen weeks in total. The usual hold-ups are down valuations, slow searches from the local authority, missing paperwork on a leasehold flat, and delays elsewhere in the chain. A remortgage is quicker, often completing four to eight weeks from application.

If your application is declined

A decline isn't the end of the road. Your broker will find out the reason where the lender will share it, review your credit file for errors, and either place the case with a lender whose criteria fit better or advise you to wait a few months while you clear a default or build a longer track record. Because they know criteria across the market, a broker can usually redirect an application far faster than you could by applying to lenders one at a time - and every declined application of your own risks another hard search on your file.

Ready to get started? ClearScore connects you to L&C, a fee-free mortgage broker, so you can see your eligibility and book a chat. See your options.

Mortgage broker FAQs

Does speaking to a mortgage broker affect my credit score?

No. An initial conversation, a fact-find and a mortgage illustration involve no credit search at all. Most brokers and lenders then use a soft search to check your eligibility and produce a Decision in Principle - soft searches are visible only to you and have no effect on your score. A hard search is recorded only when a full application is submitted, or occasionally at DIP stage with certain lenders. Ask your broker to confirm which search a lender uses before they run it, and avoid making several full applications in quick succession.

Can a mortgage broker get me a mortgage with bad credit?

Often, yes. Even if your score sits in the Let’s start climbing band (0-409), lenders take very different views on missed payments, defaults, CCJs, debt management plans and past bankruptcies, and specialist lenders exist for these cases. A broker's value here is knowing which lender will accept your specific history without you making speculative applications that add hard searches to your file. Expect to need a larger deposit - frequently 15% to 25% - and to pay a higher rate than a borrower with a clean file. Check your credit report before you speak to anyone - checking your score on ClearScore won’t affect it, so there are no surprises.

How do I check a mortgage broker is FCA regulated?

Search the Financial Services Register on the Financial Conduct Authority's website using the firm's name or its FCA reference number, which should appear in the small print on its website and emails. Confirm the firm is authorised for mortgage advice and arranging, check the trading address matches, and if the broker is an appointed representative, check the principal firm they operate under. Never use contact details supplied by the broker to verify them - go to the register directly.

What's the difference between a mortgage broker, a mortgage adviser and an IFA?

'Mortgage broker' and 'mortgage adviser' mean essentially the same thing in practice - a qualified professional who recommends and arranges mortgages, holding CeMAP or an equivalent qualification. An independent financial adviser covers a much broader remit including pensions, investments and protection; some IFAs advise on mortgages too, but many refer that work to a specialist. For a mortgage alone, a dedicated broker is usually the better choice.

Can I use more than one mortgage broker at the same time?

Yes, and there's nothing improper about it. You can take advice from two or three brokers and compare their recommendations before committing. The practical limits are that only one can submit your application to any given lender, and you shouldn't let each of them run credit searches - keep it to soft searches until you've picked one. If a broker charges an upfront fee, be careful about paying more than one.

How do I complain about a mortgage broker?

Complain to the firm in writing first. It has up to eight weeks to issue a final response. If you're unhappy with the answer, or you hear nothing within eight weeks, you can refer the complaint free of charge to the Financial Ombudsman Service, generally within six months of the firm's final response. The Ombudsman can order the firm to pay compensation for financial loss and for distress and inconvenience, and its decision is binding on the firm if you accept it.

Do I need a broker if I'm a first-time buyer using a government scheme?

You don't have to use one, but it helps. Schemes such as Shared Ownership, First Homes and the mortgage guarantee scheme are supported by a limited pool of lenders, each with its own criteria on lease terms, staircasing and acceptable deposits. A broker who works with these products regularly will know which lenders participate and what the paperwork demands, which saves considerable time.

Can a broker help if I'm self-employed or on a contract?

This is where brokers add the most value. Lenders vary enormously in how they assess self-employed income - some average two years' profits, some use the latest year, some take salary plus dividends while others accept retained profit in a limited company. Contractors are often assessed on their day rate multiplied out annually rather than on accounts. A broker who knows these criteria can match you to a lender that treats your income favourably, rather than leaving you to discover the hard way that a high street bank won't.