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Six in 10 people who took out a mortgage in the past five years used a broker, a Which? survey reveals.
A mortgage broker is a company or individual authorised by the Financial Conduct Authority to arrange mortgages between borrowers and lenders. They can search thousands of deals to help find the right one for you.
While some charge fees, others don’t – and not all can access every deal.
Here, Which? explains how much mortgage brokers can cost, what to look for when picking a broker and how to shop for a deal yourself.
Some brokers are free but many charge borrowers a fee. The exact amount they charge and how the fee is calculated varies between providers.
One common approach is for borrowers to access free initial advice, and then be charged a fee if they go on to choose a mortgage through the broker. For example, Alexander Hall, a large London broker, charges a £499 fixed procurement fee to be paid once your mortgage has been chosen.
Other brokers will calculate the fee as a percentage of the loan. The Mortgage Advice Bureau says its fee can be up to 1%, although a typical charge is 0.3% of the amount borrowed. This means that if you borrowed £250,000 you would pay a fee of £750.
You can also find brokers that won't charge you anything. L&C is the UK's largest fee-free mortgage broker. Another example of a fee-free broker is the online-only mortgage broker, Mojo.
Fee-free brokers typically earn commission from lenders when they arrange a mortgage. For example, Mojo says it receives commission from lenders once a mortgage is secured. Similarly, L&C makes money by receiving payment from lenders when a mortgage completes.
It's normal for mortgage brokers to earn commission from lenders after arranging a mortgage. What all brokers must do is clearly outline any commission they receive from a lender before entering into a contract to act on your behalf.
No. Not all brokers can access every mortgage on the market.
Whole-of-market brokers can search the widest range of products. They can assess almost all mortgages available through brokers, which make up the vast majority of deals. This means they can recommend the cheapest or most suitable option for you.
By contrast, a broker that isn’t whole-of-market can only offer deals from lenders on its ‘panel’. That could mean you miss out on better rates elsewhere.
It’s also worth knowing that some lenders, such as First Direct, only offer mortgages directly to borrowers. These deals won’t appear in a broker search. If you’re interested in one of these lenders, you’ll need to apply direct.
Some brokers also have access to exclusive deals that are only available through them, although not all lenders offer these. Santander says it offers the same mortgage deals whether borrowers apply directly or through a broker.
When looking for the best deal, a broker won’t just consider the headline rate but also any upfront fees. Our recent research found that the lowest rates for first-time buyers and home movers often come with fees of £999. For those remortgaging, the lowest rates can carry fees of almost £2,000.
This is where a broker can add value. They can weigh up the rate and the fees to work out which deal is truly the most cost-effective for you.
Start by deciding how you want to deal with a broker. Some offer face-to-face appointments through local branches, while others operate entirely online.
In our survey, 17% of borrowers used a local or smaller high street broker, while 14% used the Mortgage Advice Bureau, which has branches across the UK.
Our research also shows that many borrowers choose online-only brokers, such as Better.co.uk, Habito, L&C, Mojo and Tembo, although brokers with branches were slightly more popular overall.
Before committing, check how the broker is paid. Make sure you understand what you’ll pay and when.
You should also ask whether the broker is whole-of-market and whether they will tell you about direct-only deals. In some cases, the best rate may only be available by going straight to a lender, so it’s important to know if your broker will flag those options.
To check that a provider, or individual, is authorised to broker mortgages, simply use the FCA register. It will tell you the financial services the firm is authorised to provide.
You can search for a mortgage without using a broker. At Which? you can compare leading deals and read reviews of 21 lenders, helping you weigh up customer service alongside the interest rate on offer.
We also cover green mortgages, which are usually aimed at homes with an EPC rating of A or B and may offer lower rates. Our guide explains how these deals work and which lenders currently offer them.
If you are searching for a deal yourself, it's important to understand the factors that affect mortgage rates. Make sure you are looking at deals that match your borrower type and loan-to-value (LTV). As your LTV falls, mortgage rates tend to become cheaper, although this trend stops once you are below 60% LTV.
It’s also important to compare widely. Don’t assume your existing bank or building society will reward loyalty. Our research shows that preferential rates for current account customers are rare.
One exception is Club Lloyds. If you hold this account, you may be eligible for discounted Lloyds mortgage rates, so it’s worth checking what’s available.
Find the right mortgage using the fee-free service provided by L&C Mortgages
Compare mortgagesIf you click on the link and complete a mortgage with L&C Mortgages, L&C is paid a commission by the lender and will share part of this fee with Which? Ltd helping fund our not-for-profit mission. We do not allow this relationship to affect our editorial independence. Your home or property may be repossessed if you do not keep up repayments on your mortgage.
The Which? research in this story was a survey of 2,059 UK adults, conducted by Deltapoll. The survey ran from 30 January to 2 February 2026.
