Mortgage broker fees: how much does a broker cost?

"How much does a mortgage broker cost?" sounds like it should have a single number for an answer. It does not, and any broker who gives you one without asking about your situation is guessing. But the ranges are well established, so you can walk into the conversation knowing roughly what is fair.

I'm Max Harris, founder of Bright Box, where I advise on mortgages and protection. Here is the full picture of what a broker costs, where the money comes from, and how to judge whether a fee is worth paying.

The short answer

Most people who pay a broker fee are charged between £500 and £700. According to a recent industry study, £500 is the single most common figure, the average sits at around £640 for a purchase (£623 for a remortgage), and fewer than one in ten pay £300 or less. Some brokers charge a percentage of the loan instead, usually 0.3% to 1%. And a good number charge you nothing at all, taking only the commission the lender pays them.

So the honest range runs from £0 to over £1,000, depending on the broker and the complexity of your case. The number on its own tells you very little. What matters far more is what the fee buys you and whether it is contingent on your mortgage completing.

The two parts of what a broker costs

Every broker's pay comes from one or both of two places. Understanding the split is the key to the whole topic.

1. The lender's commission (the procuration fee). When your mortgage completes, the lender pays the broker a percentage of the loan, usually around 0.3% to 0.4%. This comes out of the lender's margin, not your pocket, and it does not affect your rate.
2. The client fee. A charge from the broker to you, for their advice and work. Some brokers charge one, some do not.

We pull the commission side apart in detail in how mortgage brokers get paid. For this page, the part that lands on your bill is the client fee, so that is where we will spend most of the time.

How much is the broker fee, really?

There is no fixed rate set by anyone, which is exactly why fees vary. In practice they come in two shapes:

Fee model	Typical figure	Good to know
Flat fee	£500–£700 (avg ~£640)	The most common model. Simple and predictable.
Percentage of loan	0.3%–1% of the amount borrowed	On a £200,000 loan, 0.5% is £1,000. Watch this on larger loans.
Fee-free	£0 to you	The broker is paid only by lender commission.

A flat fee tends to be the fairest to compare, because you know the number upfront. A percentage fee can quietly become large on a higher loan, so if a broker quotes a percentage, do the multiplication before you agree. Complex cases, such as adverse credit or unusual income, sometimes carry a higher fee because they take more work.

When do you actually pay it?

The timing matters as much as the amount, because it is really a question of risk. There are three common points a fee can fall due:

• Upfront or on application. Paid early, sometimes before you even have an offer. If the case then falls through, you may not get it back.
• On completion. Paid only once the mortgage is fully done. The lowest risk to you.
• On offer. Paid once the lender formally issues your mortgage offer, which is the point the hard part is over but before completion.

The further down that list, the better for you, because your money is tied to a result rather than to effort. If a broker wants a non-refundable fee upfront, that is not automatically wrong, but it is worth asking why.

Encouragingly, charging after the offer is issued is now the most common approach. In that same study, 46% of borrowers paid their fee at that point rather than upfront. It is the model we use at Bright Box, for exactly the reason above — you should not be paying before the hard part is done.

Are 'fee-free' brokers actually cheaper?

This is the trap in the whole topic, so it is worth saying plainly: a fee-free broker is not automatically the cheaper choice.

Here is why. A broker fee is a few hundred pounds, paid once. The mortgage itself runs for years, and the difference between a well-chosen deal and a poorly-chosen one is measured in thousands. If a fee-charging broker puts you on a better-fitting rate, or gets a tricky case approved that a fee-free service would have turned away, the fee pays for itself many times over.

The fee is the small number. The deal you end up on is the big one. Judge a broker on the second, not the first.

That does not mean fee-free is bad. Plenty of fee-free brokers do excellent work. It just means "free" should never be the only thing you weigh, any more than you would pick a mortgage on its arrangement fee alone. For how this compares with skipping a broker entirely, see mortgage broker vs going to your bank.

What we charge at Bright Box

Since this article is about being straight with the numbers, here is our own model with nothing hidden:

• We charge a client fee that varies with how complex your case is.
• We only charge once your mortgage offer has been issued. Nothing upfront, and nothing at all if your case does not complete.
• We also receive the lender's procuration fee on completion, like every broker.
• If a better rate appears before you complete, we re-rate it for free.
• You become a client for life, so your future remortgages with us are free.

We charge because doing the job properly takes real time, and that work is what secures sharp rates and gets borderline cases over the line. We would rather be open about it than dress the cost up. If you want to see where a broker fee sits among all the other costs of buying, our guide to mortgage fees and costs lays the whole lot out.

The bottom line

For most people the fee is worth it — even when a case looks simple on paper, there are still lender queries, packaging, a possible down-valuation and the legal process for someone to carry. The honest way to weigh it is not "is there a fee?" but "does the fee save me more than it costs?" We answer that in full in is it worth paying a mortgage broker fee? And if you are still getting to grips with the basics, it helps to know that "adviser" and "broker" mean the same thing.

If you would like us to weigh it up for your situation, get in touch with the team or read about how we work.

Last updated: 18 June 2026. Average fee figures are from a recent industry study (March 2026); individual fees vary by broker, case complexity and loan size. This article is general information, not personal advice. Your home may be repossessed if you do not keep up repayments on your mortgage.

Frequently asked questions

How much does a mortgage broker cost?

Most people who pay a broker fee are charged between £500 and £700, with £500 the most common figure and the 2026 average around £640 for a purchase (£623 for a remortgage). Some charge a percentage of the loan, usually 0.3% to 1%. Others charge nothing and are paid only by the lender's commission. Always get the fee in writing before you start.

Do you pay a mortgage broker upfront?

It varies. Some brokers take a fee upfront or on application, others only once your mortgage completes. A fair arrangement ties the fee to the mortgage actually going ahead, so you pay nothing if it falls through. At Bright Box we only charge once your offer has been issued.

Can you get a mortgage broker for free?

Yes. Fee-free brokers charge you nothing and are paid only by the lender's commission (the procuration fee). That does not make them automatically cheaper overall, because what you pay across the whole mortgage depends far more on the rate and product you end up with than on the broker's fee.

Is a mortgage broker fee worth it?

Often, yes. A fee that secures a better-suited deal, or simply gets a tricky case approved, can save far more than it costs over the life of the mortgage. The fee is worth judging against what it saves you, not in isolation.

Does the broker fee get added to my mortgage?

Not usually. A client fee is normally paid directly to the broker, not added to your loan, though some borrowers choose to add certain costs to the mortgage. The lender's commission is separate and comes from the lender, never from you, and does not affect your rate.