Mortgage Broker Fees, Clearly Explained

How lender commission works

A lender may pay the broker commission when an eligible mortgage completes. This is different from a fee charged directly to you. Commission arrangements vary; it would be misleading to say every lender pays an identical amount on every mortgage.

Ask how remuneration is disclosed, what product range is available and how the recommendation meets your circumstances. An absence of a broker fee is useful information, but it is not proof that a particular product has the lowest overall cost.

Costs that can still apply

• Lender arrangement, product or booking fees, including interest if financed.
• Valuation, survey and legal charges; free packages can have exclusions.
• Early repayment or exit charges under your current mortgage.
• Property tax and purchase expenses where you are buying a home.

What to check before instructing a broker

Ask whether there is an initial consultation fee, when any advice or application fee becomes payable, whether it is refundable and whether a later change of product creates another charge. Get the answer for your service in writing rather than assuming all brokers operate the same model.

Keep the disclosure with your illustration and offer documents. If something is unclear, ask before proceeding. A fee comparison should sit alongside service suitability, lender range and how your case will be handled.