Should You Use a Mortgage Broker in the UK? Pros, Cons, and What to Expect

If you're applying for a mortgage, one of the first decisions you’ll face is whether to go directly to a lender or use a mortgage broker to help you find a deal.

Some buyers prefer to shop around themselves, while others turn to brokers to guide them through the increasingly complex mortgage market. But are mortgage brokers really worth it? And how much do they actually help?

In this detailed guide, we’ll explain exactly what mortgage brokers do, when it makes sense to use one, how they get paid, and how to find a reliable, FCA-authorised adviser.

UK mortgage broker and homebuyer discussing mortgage options at a desk

What Is a Mortgage Broker?

A mortgage broker is a qualified intermediary who helps you find and apply for a mortgage by comparing deals across different lenders. They assess your finances, explain your options, and manage much of the application process on your behalf.

There are two main types of brokers in the UK:

Whole-of-market brokers – Can access deals from a wide range of lenders, including some not available to the public directly
Tied or multi-tied brokers – Work with a limited panel of lenders

Most reputable brokers are regulated by the Financial Conduct Authority (FCA) and must act in your best interest.

What Does a Mortgage Broker Do?

A good broker can provide a range of services, including:

Assessing your affordability and eligibility
Explaining different types of mortgages (fixed, tracker, interest-only, etc.)
Comparing deals from multiple lenders
Advising on deposit size, term length, and repayment methods
Preparing and submitting your mortgage application
Liaising with lenders, estate agents, and solicitors
Helping with mortgage protection insurance if required

Pros of Using a Mortgage Broker

1. Access to More Mortgage Deals

Whole-of-market brokers can compare mortgages from dozens of lenders, including:

High street banks
Building societies
Specialist lenders (useful for complex cases)

They may also have access to exclusive broker-only deals not available if you apply directly.

2. Saves You Time

Rather than contacting multiple lenders yourself, a broker does the legwork — saving hours of comparison, paperwork, and follow-up calls.

3. Better for Complex Applications

If you’re self-employed, have irregular income, a poor credit history, or are buying an unusual property, a broker can match you with lenders who specialise in those situations.

4. Personalised Advice

A good broker will:

Review your finances
Recommend the most suitable products
Explain fees, terms, and risks in plain English

This level of support can be invaluable, especially for first-time buyers.

5. Support Through the Process

Brokers can handle admin, chase up progress, and spot issues early — reducing stress and delays.

Cons of Using a Mortgage Broker

1. They May Charge a Fee

Some brokers charge upfront or flat fees, typically between £300–£600. Others may charge a percentage of the mortgage (e.g. 0.3% of the loan amount).

However, many brokers are fee-free for you, as they earn commission from the lender.

Tip: Always ask upfront whether they charge a fee and how they’re paid.

2. Not All Brokers Are Whole-of-Market

Some tied brokers only work with a small panel of lenders. This can limit your options and mean you miss out on better deals elsewhere.

Ask whether your broker is whole-of-market or tied before committing.

3. Quality Can Vary

Like any industry, some brokers are more helpful than others. Look for:

FCA authorisation
Positive reviews on Trustpilot or Google
Recommendations from friends or family

Should First-Time Buyers Use a Mortgage Broker?

For first-time buyers, a mortgage broker can be especially helpful. You may not know:

How much you can borrow
What paperwork is needed
What type of mortgage suits your situation

A broker can walk you through the process, avoid common mistakes, and give you a clearer picture of your affordability.

When Using a Broker Makes Sense

You may benefit from using a mortgage broker if:

You're a first-time buyer or haven't applied for a mortgage in years
You’re self-employed, freelance, or on a variable income
You have a low credit score or financial history issues
You’re remortgaging and want to avoid a bad retention deal
You’re buying a non-standard property (e.g. new build, shared ownership, or converted barn)
You want access to the widest range of deals

When You Might Not Need a Broker

Applying directly might be fine if:

You’re employed with a straightforward income
You have a large deposit and excellent credit
You want to stick with your current lender
You're comfortable comparing rates and handling paperwork

Some banks and building societies now offer simple online applications, particularly for existing customers.

How Much Do Mortgage Brokers Cost?

Costs vary depending on the broker and the complexity of your case.

Common payment structures include:

No fee to you (broker paid by lender commission)
Flat fee (e.g. £395, often refundable on completion)
Percentage of loan (e.g. 0.3% of £200,000 = £600)

Always get a clear written quote and breakdown of how they’re paid before proceeding.

If your broker charges you and receives commission from the lender, they must disclose this.

How to Find a Reputable Mortgage Broker

Search the FCA Register to confirm they're authorised
Ask family or friends for recommendations
Check online reviews (e.g. Trustpilot, Google)
Avoid brokers who pressure you into unsuitable insurance add-ons or rush you into decisions

Important: Brokers must give you a Key Facts Illustration (KFI) before you apply, outlining all fees and terms.

Unique Insight: What Happens Behind the Scenes

Many borrowers don't realise that brokers can pre-assess your application before it reaches a lender. They often run "soft checks" and spot potential red flags — such as missed payments or unusual income patterns — that could lead to rejection.

This insider knowledge can help tailor your application and avoid wasting time or damaging your credit score with unnecessary hard checks.

Related article: Mortgage Affordability Checks in the UK

FAQs: Using a Mortgage Broker

Can I still get a mortgage if I apply directly to a bank?

Yes. You can apply directly to any lender, but you may not see the full market or get personalised advice.

Do brokers always get better rates?

Not always — but they may access exclusive deals or know which lenders are flexible with certain criteria.

Can a broker help if I have bad credit?

Yes. Some brokers specialise in subprime mortgages and have access to lenders who may consider your application.

Related article: Can You Get a Mortgage with Bad Credit?

What’s the difference between a mortgage broker and a mortgage adviser?

The terms are often used interchangeably in the UK. However, brokers typically compare deals across lenders, while advisers may be tied to a specific bank or provider.

Is it safe to use an online mortgage broker?

Yes — as long as they are FCA-regulated and transparent about fees and services. Many digital brokers now offer efficient, fee-free services with good customer reviews.

Final Thoughts: Should You Use a Mortgage Broker?

Using a mortgage broker isn’t essential — but for many buyers, it makes the mortgage process smoother, more efficient, and potentially more cost-effective.

A good broker can open the door to deals you didn’t know existed, help avoid rejection, and save you from hours of admin. Just make sure they’re authorised, upfront about fees, and genuinely whole-of-market.

If your situation is simple and you’re confident navigating the process, applying directly could be fine. But for complex cases or peace of mind, a broker is often well worth considering.

Disclaimer: Smart With Money may receive compensation through affiliate links, sponsored content, or advertising featured on this site. This does not influence our editorial standards. All reviews and recommendations are based on independent research, and we aim to provide accurate, objective information to help you make informed financial decisions.

Please note: All content on SmartWithMoney.co.uk is for informational purposes only and does not constitute financial advice. Always seek guidance from a qualified financial adviser before making any financial decisions.