01How a fee-free broker is paid

When a mortgage arranged by a broker completes, the lender pays the broker a commission. You do not receive a separate bill for it. Commission is how most mortgage advice in the UK is paid for: in 2025, it made up about 78% of the regulated mortgage revenue UK firms reported, £1.22bn of £1.57bn (FCA retail intermediary market data 2025).

MoneyHelper notes that some brokers charge a fee, some are paid by commission and some receive both. A broker charging no fee is a normal, common model, not a special offer.

02What "free" does not cover

  • The lender's fees. Product or arrangement fees, which can be added to the loan and then accrue interest.
  • Valuation, survey and legal costs, which you pay whichever route you take.
  • Insurance. If the broker also arranges life, income or home insurance, it is usually paid commission by the insurer for that too. You do not have to buy insurance through the broker.
  • Harder cases. Some brokers that are usually fee-free charge for cases that take more work. Ask before you start.

03Fee-free or fee-charging: what actually differs

Whether a broker charges you a fee tells you less than how many lenders it can search. A fee-free broker searching the whole market can find the same deals as a fee-charging one; a broker on a limited panel cannot, whatever it charges. The broker must say whether its range is limited and, if so, name the lenders or tell you how many there are and that you can ask for the list (MCOB 4.4A).

Some mortgage deals are available only direct from the lender, so ask whether the broker's search includes them. MoneyHelper also notes that advisers at a bank or building society do not normally charge a fee, but can offer only that lender's mortgages.

04Questions to ask

  1. Do you charge me anything, now or later, including if the application fails?
  2. Do you search the whole market, or a panel? How many lenders?
  3. Is the rate you are offering me the same as the lender would give me direct?
  4. Do you also receive commission for any insurance you suggest?
  5. Are you on the FCA Register? Check before you share documents, using our check an adviser toolkit.

05Common questions

Does commission make my mortgage more expensive?
The commission is paid by the lender, not added to your bill as a separate charge. Ask whether the rate you are offered matches the lender’s direct rate, and whether the broker’s search included deals sold only direct.
Can a broker charge a fee and take commission?
Yes. Many do. The broker must tell you at the start about both, and whether the commission is set against the fee.
Is a fee-free broker whole of market?
Not necessarily. Being fee-free is about how the broker is paid; being whole of market is about which lenders it searches. Ask about both.

Sources and further reading

  1. FCA Handbook — MCOB 4.4A, initial disclosure by mortgage intermediaries
  2. MoneyHelper — mortgage advice: should you use a mortgage adviser?
  3. MoneyHelper — financial adviser fees: typical costs by type of advice (accessed October 2026)
  4. FCA — retail intermediary market data 2025 (published 23 July 2026)

About this guide: figures are labelled with their source and date and describe the market, not any firm; illustrations are arithmetic, not forecasts or quotes. This is general education, not regulated advice or a personal recommendation, and FinancialAdvisor.co.uk is not authorised or regulated by the Financial Conduct Authority. Spotted an error? Report it and we will correct it.