The amount you’ll pay for a mortgage broker (or mortgage advisor — it’s the same thing) depends on the broker you choose and how they’re paid. There are three models: flat fee, percentage and fee-free (paid a commission by the lender).
Habito by Monzo is a fee-free mortgage broker. Our mortgage advisors are paid a commission, which is a fraction of a percentage of the value of your mortgage.
A mortgage broker can help you navigate the array of mortgage deals out there, and potentially save you money.
Habito by Monzo is authorised and regulated by the Financial Conduct Authority (FRN 714187).
Your home may be repossessed if you do not keep up repayments on your mortgage.
The 3 ways mortgage brokers charge
Mortgage brokers in the UK are usually paid in one of three ways: a flat fee (typically £300-£500); a percentage of the mortgage (usually 0.3% up to 1%); or through a commission from the lender (fee-free to you, the borrower). Some charge a combination.
- Flat fee. £300-£500 or higher in complex cases. You pay this fee either upfront or when you receive a mortgage offer or on completion if you go ahead with the recommendation.
- Percentage of the loan. This is usually between 0.3% and 1% of the mortgage and 0.35% is a typical rate. On a mortgage of £250,000, a 0.35% fee would be £875.
- Fee-free (commission-only). You pay nothing. The broker earns a “procuration fee” of typically around 0.35% from the lender.
The right payment model for you will depend on your circumstances, but always check before you commit to anything what the fee is going to be, how it’s charged and when it’s due.
Check whether the broker charges a fee and gets a commission from the lender.
And if you’re being charged a fee, check whether you have to pay it if the mortgage deal doesn’t go ahead.
How much do mortgage brokers charge? Worked examples
You can see from the table below that a flat fee can work out cheaper, particularly if you’re getting a larger loan. These fees are examples only - fees vary - but a recent study found that the most common fee is £500.
| Mortgage size |
Flat fee (£500) |
% fee (0.5%) |
| £150,000 |
£500 |
£750 |
| £250,000 |
£500 |
£1,250 |
| £400,000 |
£500 |
£2,000 |
| £600,000 |
£500 |
£3,000 |
These figures are illustrative examples only and are not guaranteed borrowing amounts. The amount you may be able to borrow depends on factors including your income, regular spending, credit history, deposit size and lender affordability checks.
What is a procuration fee?
A “procuration fee” is a commission that lenders pay brokers when a mortgage completes. It’s typically 0.35% of the value of the loan, but can range from 0.2% to 0.5%. You do not pay the procuration fee directly as a separate broker charge.
Mortgage brokers must explain how they will be paid before providing regulated mortgage advice - brokers have a duty to disclose this before you commit to anything.
Are mortgage brokers free?
Some mortgage brokers (mortgage advisors) are free. Fee-free brokers don’t charge you but they earn income from the lender’s commission when your mortgage completes. Fee-free doesn’t mean nobody pays — the lender pays. You do not pay the broker a separate advice fee, although other mortgage-related fees and costs may still apply.
Whether a fee-free deal or a fee-charging deal is better will depend on your situation. Our guide to free vs fee-charging brokers compared covers this in detail.
When paying a fee can be worth it
There are several scenarios where it’s worth considering paying a fee for specialist mortgage advice. We’ve listed the main ones below.
- Complex cases. If you’re self-employed or your credit rating is bad, for example, you might need the niche expertise of a specialist fee-charging broker.
- High-value mortgages. Applying for £1m or more? The potential rate savings on this size of deal might be justified by the fee you’d pay a specialist broker.
- Unusual properties. If the property is of a non-standard construction (such as timber-framed or a listed building) you might benefit from a specialist broker.
- Exclusive product access. Some brokers may have exclusive access to certain deals.
Brokers can get exclusive access to certain deals. But equally, some lenders offer mortgages only to borrowers directly.
What about commission steering?
If you’re relying on a mortgage broker to find you a deal, how do you know they’re not being swayed by commission? There are strict rules to prevent this in the UK.
Brokers have a duty to act in the client’s best interest and find the most suitable product - advice must be driven by your needs rather than maximising their commission. And the financial watchdog, the Financial Conduct Authority (FCA), requires brokers to state all fees and any commission from lenders before they make a recommendation.
To ensure you have the full picture, ask your broker:
- Which lenders they considered, and why
- The commission they stand to get
- Whether they’re tied to certain lenders or search the full mortgage market
Fee comparison at a glance
This table compares example fees for a £250,000 mortgage.
| Factor |
Flat fee broker |
Percentage fee broker |
Fee-free broker |
| Typical cost to you |
£300-£500 |
0.3%-1% of loan |
£0 |
| When you pay |
On proceeding or completion |
On completion |
Never (lender pays) |
| Cost on £250k mortgage |
£500 |
£750-£2,500 |
£0 |
| Predictability |
Fixed - known upfront |
Scales with mortgage amount |
£0 - known upfront |
| Common for |
Complex and standard cases |
High value or complex |
Online brokers |
These figures are illustrative examples only and are not guaranteed borrowing amounts. The amount you may be able to borrow depends on factors including your income, regular spending, credit history, deposit size and lender affordability checks.
How much do brokers charge to remortgage?
You’ll find the same fee types with remortgaging as you do with getting a mortgage. Fee-free brokers such as Habito by Monzo can give remortgaging advice without charging you.
If you’re considering a product transfer — switching deals with your existing lender — you may be able to arrange it directly. A broker can also help you compare it with other remortgage options before you decide.
Find out more in our full remortgaging guide.
Your home may be repossessed if you do not keep up repayments on your mortgage.
Chat with a mortgage expert
We’re a fee-free broker, which means you can chat with one of our friendly mortgage experts for nothing. We can help you navigate the market and figure out your available options.
Also for free, you can get an estimate of the amount you could borrow by answering a few questions and receiving a mortgage in principle certificate. Habito does not carry out a credit check for this initial estimate. A lender will carry out its own checks if you later make a full mortgage application.
Options available to you will depend on lender criteria, affordability and your personal circumstances.
Your home may be repossessed if you do not keep up repayments on your mortgage.
Habito by Monzo is a mortgage broker, not a lender. We’re authorised and regulated by the Financial Conduct Authority (FRN 714187). This content is intended for general guidance and is not a substitute for personalised mortgage advice.
Frequently asked questions
Do all mortgage brokers charge a fee?
No. Some brokers are fee-free, and earn income from a commission from the lender. Others charge a flat fee, a percentage of the loan or a combination. Always ask how a broker is being paid before you commit to anything. Our guide explains more about how mortgage brokers work.
Who pays the mortgage broker?
Brokers which charge a fee get paid by you. Fee-free brokers are paid by the lender through a “procuration fee” (a commission) on completion of the mortgage. In both cases, the broker must be FCA-regulated and act in your interest.
Can I negotiate mortgage broker fees?
In some cases you can. Some fee-charging brokers will negotiate, particularly on larger or straightforward mortgages. Fee-free brokers have no client fee to negotiate. It’s worth asking - if you don’t ask, you don’t get - and ensure any agreed fee is put in writing.
Is a fee-free mortgage broker as good as a fee-charging one?
Both types of broker can offer high-quality advice and search the whole mortgage market. The difference is simply how they’re paid. A fee-free broker may handle more cases. Fee-charging brokers may offer different service models depending on their business.. Check online reviews and whether the broker searches the whole mortgage market or a limited group of lenders.
How does Habito by Monzo charge?
We’re a fee-free online broker. You pay nothing. We receive commission from the lender if your mortgage completes. We'll explain how we're paid before we recommend a mortgage.. Our technology searches more than 95 lenders across 20,000+ mortgage products in the UK to help identify mortgages that may suit your circumstances.. You can view the lenders we currently work with here. The lenders available to you will depend on your circumstances and lending criteria https://www.habito.com/lenders.
This article is based on guidance from organisations such as MoneyHelper, Citizens Advice and GOV.UK. Mortgage rules and legal processes can change, so it's worth checking the latest information or speaking to a qualified adviser.
Information is correct at the time of writing and may change. Always check the latest terms and conditions before taking out a policy.
This article is for general information only and isn't personal financial advice.
