How Much Does a Mortgage Broker Charge in the UK? (2025 Guide)

💡 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