How Much Does a Mortgage Broker Charge in the UK? (2025 Guide)
- Liam Drummond
- Apr 9
- 2 min read
💡 Quick Answer:
In 2025, mortgage broker fees in the UK typically range from £0 to £995. Fees depend on your circumstances, the complexity of the mortgage, and whether the broker charges a flat fee, a percentage, or nothing at all.
How much does a mortgage broker charge, and how many actually charge?
In the UK, the proportion of mortgage brokers who charge clients a fee varies:
Approximately 59% of mortgage brokers charge fees to their clients, while the remaining 41% operate on a fee-free basis, earning solely through commissions from lenders.
In 2022, around 52% of mortgage deals were arranged without an advice fee, indicating that a significant portion of brokers offer fee-free services.
A survey revealed that 36.6% of respondents paid a fee based on a percentage of the loan amount, suggesting that over a third of brokers may use this fee structure.
These figures highlight that while many mortgage brokers charge fees, a significant portion offer their services without direct charges to clients, relying instead on lender commissions.
🏦 Are Free Mortgage Brokers Still a Thing in 2025?
Yes, but fewer brokers are offering completely free services. Fee-free brokers are still available, especially online or for straightforward cases, but many now charge a small flat fee to cover growing admin, compliance, and lender delays.
🔍 How Are Mortgage Brokers Paid in the UK (2025)?
Mortgage brokers in the UK are paid in one or more of these ways:
1. Commission from the lender
Most commonly, brokers are paid a procuration fee (usually 0.35–0.45% of the mortgage amount) directly by the lender, meaning there’s no cost to you.
2. Broker/client fees
In 2025, more brokers are charging flat fees to cover advice, research, and paperwork — especially for complex or specialist applications.
📊 Typical Mortgage Broker Charges in 2025 (UK)
Type of Broker | Typical Fee Range | When It Applies |
Fee-free broker | £0 | Paid by a lender; common for standard cases |
Flat-fee broker | £395 – £995 | More common in 2025, often for complex cases |
Percentage-based broker | 0.4% – 1.25% | Less common, it can add up on larger mortgages |
Hourly-rate broker | £100 – £175/hour | Usually, advice-only or bespoke services |
👀 What Are You Actually Paying For?
If a broker does charge, here’s what you’re getting:
Access to exclusive mortgage deals not available to the public
A whole-market comparison across dozens of lenders
Advice tailored to your personal finances
Full support with paperwork, affordability checks, and lender communication
Faster turnaround times and fewer mistakes
🧾 Is a Mortgage Broker Worth the Fee?
✅ If they get you a better rate
✅ If they save you time and stress
✅ If you’re self-employed, a first-time buyer, or have poor credit
✅ If you want options beyond the high street
A £495 fee that saves you £5,000 over five years? That’s money well spent.
🏡 Find a Good Mortgage Broker
Drummonds Finance Group are a great mortgage broker firm based in Oxfordshire, but serves the whole of the UK.
Offer free consultations
Explain fees upfront
Only charge on application
📞 Book a Free Chat
👉 Contact Drummonds Finance Group - Click Here
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