Should You Pay Your Mortgage Broker Fees or Commission?

The number of fee-based Mortgage Brokers has grown rapidly in recent years.

The idea with fees is that you pay these charges up front, so that there’s no suggestion that the Mortgage Broker is influenced by any commission from the mortgage they recommend.

In other words, the advice is genuinely independent.

The new regulations mean that a broker has to justify to them that s/he gave you the best deal available to you. They are supposed to be checked up on regularly and can lose their licence if found to be giving bad advice.


However given the appalling recent history of financial regulation in the UK it’s probably best to be wary.

Only rely on yourself in the first instance and always check the mortgage you’ve been offered against say the latest best buy tables.


Prevention is better than the cure !

Hourly or Flat Fees

If you agree to paying a fee this might be a “flat fee” ie typically £200 or more – or a “charge per hour” fee.

If paying an hourly based fee,based on hourly charges of £75 or more – after you’ve added all the letters and follow-up, you may find that paying a flat fee or commission would have been cheaper. However, you will be more sure that what was recommended really was in your best interests.

It is also possible to pay by a combination of fees and commission.

The Mortgage Broker may be willing to set some of the commission generated against their fees, or refund some of their commission to you. This is often negotiable with the Mortgage Broker.