Mortgage broker or straight to the bank?

Not everyone offering you a mortgage has the same view of the market, and the label matters more than the branding suggests. Under FCA rules, firms must tell you which category they fall into — ask directly, and get the answer in writing.

Broker fees have risen sharply. Research published in 2026 puts the average mortgage broker fee for a purchase at around £643, up roughly 29% year on year, with most buyers paying between £500 and £700 and £500 the single most common figure.

Fee structures vary, and it's worth knowing which you're being offered before you commit: fixed fees are the most common (around 44% of brokers), followed by fees based on the loan amount (29%), a percentage of the property value (18%), and split fees paid in stages (7%). A percentage-of-property-value fee on an expensive home can be dramatically more than a flat fee for the same work.

Crucially, plenty of brokers charge you nothing. Fee-free brokers are paid a commission by the lender instead — and research suggests around 31% of buyers who paid a fee did so without realising that fee-free brokers can have exactly the same access to lenders and products. Being fee-free doesn't mean a narrower market; always ask.

The value of a broker rises steeply the further you sit from the 'standard' borrower profile. Lender criteria differ enormously in ways that aren't published, and a good broker's real product is knowing which lender treats your specific situation kindly — which saves you from collecting declined applications, each of which leaves a mark on your credit file.

Strong reasons to use a broker:

Broker advocates rarely say this, but direct can be the right answer. If you're employed on a straightforward salary, have a 20%+ deposit, a clean credit file and you're buying an ordinary house, most lenders will want your business and the rate differences at that LTV are modest.

Your own bank may also offer existing-customer deals that aren't visible to brokers, and some lenders keep certain products direct-only. The sensible approach isn't to pick a side — it's to get a broker's recommendation and check your own bank's direct offer, then compare the total cost, not just the headline rate.

One warning: if you go direct and the bank offers 'execution-only' — no advice, you choose the product yourself — you give up the protection that comes with a recommendation. With advised sales, if the product turns out to be unsuitable you have recourse to the Financial Ombudsman Service. Choosing for yourself, you don't.

The advertised interest rate is not the price of a mortgage. A deal at a slightly lower rate with a £1,500 arrangement fee can easily cost more over a two-year fix than a marginally higher rate with no fee, particularly on a smaller loan where the fee is spread across less borrowing.

Ask any broker or bank to show you the total cost over the initial deal period — rate, arrangement fee, valuation fee, any cashback, and the broker fee if there is one. That single number is what you should be comparing. A broker who won't produce it on request is one to be wary of.

Finally, check what happens at the end of the deal. When your fixed period ends you'll roll onto the lender's standard variable rate, which is usually much higher, so factor in the cost and hassle of remortgaging — and whether the product carries early repayment charges if your circumstances change before then.