Should I use a mortgage broker when applying for a mortgage?
A mortgage broker can support applicants by reviewing available products, helping with paperwork and liaising with solicitors. In this guide, we outline what a mortgage broker does and the typical costs you can expect.
What does a mortgage broker do?
A mortgage broker (or mortgage adviser) acts as an intermediary between you and the lender. They review information such as your income, outgoings and credit history to get an understanding of your finances before matching you with potential mortgage products.
A broker may help you understand mortgage affordability, explain lender criteria and walk you through the different types of mortgages available.
Typical things you might expect your mortgage broker to do include:
- Conducting an assessment of your financial circumstances
- Explaining what different lenders may look for
- Reviewing your income, outgoings and credit history
- Searching for available mortgage products and deals
- Preparing paperwork and submitting your application
- Communicating with lenders and solicitors on your behalf
Types of mortgage brokers
There are two types of mortgage brokers: independent (or whole‑of‑market) and ‘tied’:
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Independent or whole‑of‑market brokers. An independent mortgage broker has access to a wide selection of lenders across the UK. This means their recommendations are not limited to a smaller group
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Tied mortgage brokers. A tied broker works with a specific lender or a limited panel of lenders. They will only recommend products from this group
Benefits of a mortgage broker
Mortgage brokers can support both first time buyers and existing homeowners as they help to understand different mortgage types, deposit requirements and affordability checks. A mortgage broker can:
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Analyse the mortgage market to understand the latest rates
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Provide access to many lenders, potentially offering more comparison options
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Access exclusive deals you cannot get directly
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Offer guidance throughout the home buying journey
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Help you complete and submit essential paperwork
It’s important to consider possible disadvantages such as broker fees, or the limitations of tied brokers to recommend products from a specific lender or panel. Even where a broker can access exclusive deals, this does not always mean they cost less than applying directly with the lender.
Are new build mortgage brokers necessary?
How much does a mortgage broker cost?
Fees can vary depending on the service offered and the complexity of your circumstances. Some brokers won’t charge a direct fee and instead get a commission from the lender. Others may combine fees and commission.
How do mortgage brokers charge?
Mortgage brokers can charge in different ways, including:
- Fixed fee. A flat fee for a service, such as a set payment of £500
- Commission. The broker charges you nothing directly, and instead can receive commission from lenders as a percentage of your loan amount
- Percentage. The broker may set their fee as a percentage of your mortgage
- Hourly rate. This is usually for specialised work such as complex financial situations, rather than standard advice
Fee arrangements differ between brokers. Whether a fee is refundable if your application does not proceed depends on the broker’s terms.
Mortgage broker vs bank adviser: what’s the difference?
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Mortgage broker |
Bank adviser |
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Can offer access to products from a variety of lenders |
Can only access mortgage products from their own bank in most cases |
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Can often compare a wider selection of deals |
May offer fewer product options |
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Usually works independently of any single lender |
Usually works for only one bank |
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Might offer tailored support for more complex circumstances |
Can be more suited to applicants who already bank with them |
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May be suitable for first time buyers or new build purchases |
Could be suitable if you want a product specifically from your bank |
When should you use a mortgage broker?
A mortgage broker may be used at different stages of the home buying process, including when:
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You want access to a wider range of mortgage products
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You’re a first time buyer and would like help understanding what lenders look for
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You have complex income, such as self‑employment or multiple income streams
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You’re buying a new-build home with specific lender criteria
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You want help managing paperwork and communications
Some buyers approach a broker early on, even before beginning their property search. Others contact a broker once they’ve found a home they want to buy.
How to apply for a mortgage through a broker
While the exact process can vary, applying for mortgage products through a broker can often follow a similar process, such as:
- Initial conversation. A discussion about your financial circumstances, deposit and goals can be helpful before getting started with a broker
- Affordability review. A broker then usually reviews your income, spending and credit history to assess your affordability
- Research and product recommendations. A search of available lenders can be undertaken prior to suggesting suitable options for your individual circumstances and needs
- Decision in Principle (DIP). The broker might help you to apply for a DIP, which can give you an idea of how much you could realistically borrow for your mortgage
- Full mortgage application. Once you have an accepted offer on a home, the broker submits your application
- Lender assessment. The lender then usually assesses your application, credit file and conducts a property valuation
- Mortgage offer. If your lender approves, you will receive a formal mortgage offer
- Completion. Your solicitor can then finalise the purchase, and your mortgage funds are released
Each stage may involve different checks or documents, but your broker can often guide you through what is needed.
FAQs
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A broker can be helpful for first time buyers because they are often able to compare a range of products and explain lender criteria. The support with paperwork may also make the process feel more manageable. However, some brokers charge fees, so it can be useful to understand the full cost involved before you proceed.
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Brokers may have access to exclusive rates from certain lenders. However, not all exclusive deals are guaranteed to be more affordable, so it can be helpful to compare options and check whether any fees apply.
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All mortgage brokers in the UK are regulated by the Financial Conduct Authority (FCA). This means they follow certain standards when giving mortgage advice. You can check whether a firm is authorised on the FCA’s Financial Services Register.
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You don’t need a broker, but some new-build buyers use one because lenders can have specific criteria for new-build homes. A new build mortgage broker may already understand these policies.
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Yes. You can apply directly to lenders on your own without a mortgage broker. A broker is simply another option if you want support comparing products or managing the application.
Explore our brand-new homes across the UK. You can call our Sales Advisers to discuss the best offers for your circumstances, terms and conditions apply.
Disclaimer: This article is for general informational purposes only and does not constitute mortgage advice. We would always recommend that advice is taken from a regulated mortgage adviser regarding your specific circumstances.
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