How Much Does a Mortgage Advisor Cost in the UK?

How Much Do Mortgage Advisors Typically Charge?

Mortgage adviser fees depend on the business, the mortgage involved and how the adviser charges for their services.

According to MoneyHelper, mortgage advice may involve no upfront adviser fee where the adviser receives commission, a fee of approximately £300–£1,000, or a percentage-based charge of around 0.35%–1% of the mortgage amount.

These are broad examples, not fixed industry prices.

The FCA's analysis of 2024 mortgage transactions found that the average reported intermediary fee was approximately £510 among transactions where a fee was charged.

Across all intermediated transactions, including those without a customer fee, the average was approximately £220.

The actual amount you're quoted may be higher or lower.

Mortgage Advisor Fee Examples

These examples illustrate different charging methods. They are not quotations or recommendations.

The important point is to understand the adviser's complete charging arrangement before proceeding.

Why Do Some Mortgage Advisors Charge Fees?

Mortgage advisers provide services that may include reviewing your circumstances, researching mortgage products, explaining recommendations and helping with an application.

Different businesses have different charging structures.

For example, one adviser might charge a fixed fee regardless of the mortgage amount, while another might charge according to the amount borrowed.

Some advisers receive commission from the lender when a mortgage completes.

Others receive both lender commission and a customer fee.

A higher fee doesn't automatically mean better advice, and a fee-free service doesn't automatically mean a better deal.

It's worth comparing the service, available lenders and overall mortgage costs.

Are Fee-Free Mortgage Advisors Really Free?

Some mortgage advisers don't charge customers directly for their advice.

Instead, they receive commission from the lender when a mortgage is arranged.

This can mean you pay no separate mortgage-advice fee.

However, it's important to distinguish between:

• No direct adviser fee: You don't pay the adviser separately.
• No mortgage costs: This is different. The mortgage itself may still involve lender fees, interest and other charges.

An adviser who doesn't charge a customer fee should still explain how they're paid.

You should also ask which lenders and mortgage products they can consider.

What Is Included in a Mortgage Advisor's Fee?

Services vary between advisers, so don't assume every fee covers the same work.

Depending on the agreement, services might include:

Initial discussion

Understanding your mortgage requirements and circumstances.

Mortgage research

Considering products from lenders available to the adviser.

Mortgage recommendation

Explaining a recommended mortgage and why it may suit your circumstances.

Application assistance

Helping prepare and submit the mortgage application.

Communication with the lender

Responding to questions and assisting with requests for supporting information.

Ask whether the quoted fee covers the entire agreed service or whether additional charges could apply.

When Do You Pay a Mortgage Advisor?

The payment point depends on the adviser's terms.

A fee might become payable:

• When you formally instruct the adviser.
• When a mortgage application is submitted.
• When a mortgage offer is issued.
• When the mortgage completes.

Some advisers use more than one payment stage.

Before agreeing to proceed, ask:

“Exactly when will I have to pay, and what happens to the fee if my mortgage doesn't go ahead?”

The adviser should explain the payment terms and any refund arrangements.

Is the Initial Mortgage Consultation Free?

Many mortgage advisers offer an initial conversation without charge.

This gives you an opportunity to discuss your requirements, understand the service and ask about fees.

However, don't assume every adviser offers a free initial consultation. Confirm this before booking.

Find a Mortgage Adviser Covering Your Area

Looking for a local mortgage advisor?

Our free matching service can help you find a mortgage adviser covering your location, with a free initial consultation and no obligation to proceed.

• ✓ Free matching service
• ✓ Free initial consultation
• ✓ No obligation to proceed

Find My Mortgage Adviser

Does a More Expensive Mortgage Advisor Offer Better Value?

Not necessarily.

The adviser's fee is only one part of the decision.

You should also consider:

• The range of mortgage lenders they can access.
• Whether they regularly handle your type of mortgage enquiry.
• Their qualifications and regulatory status.
• Their communication and availability.
• The overall cost and suitability of any mortgage recommended.

For example, a mortgage with a lower interest rate but higher fees isn't automatically cheaper overall.

Similarly, paying an adviser fee might be worthwhile in some circumstances, but the value depends on the service and mortgage options available.

A regulated mortgage adviser can assess your circumstances and explain the options they recommend.

Mortgage Advisor Costs for Different Mortgage Types

The type of mortgage you're considering can influence the service required and potentially the fee.

First-Time Buyer Mortgages

First-time buyers may want help understanding deposits, affordability, mortgage products and the application process.

Related guide: First-Time Buyer Mortgages.

Remortgaging

If your existing mortgage deal is approaching its end, an adviser may help you explore remortgage options and compare them with alternatives available through your current lender.

Related guide: Remortgage Advisers.

Moving Home

Home movers may need to consider a new mortgage or whether their existing mortgage can be transferred to another property.

Related guide: Home Mover Mortgages.

Buy-to-Let Mortgages

Buy-to-let mortgages can involve different lender requirements and charging arrangements.

Related guide: Buy-to-Let Mortgages.

Seven Questions to Ask About Mortgage Advisor Fees

Before choosing an adviser, consider asking:

1. Do you charge a mortgage-advice fee?
2. How much will I pay in total?
3. Do you also receive commission from the lender?
4. When would I need to pay your fee?
5. Is any fee refundable if my mortgage doesn't proceed?
6. Are there additional charges for application assistance or other services?
7. Which lenders and mortgage products can you consider?

Getting clear answers makes it easier to compare advisers.

How Much Does Local Advisors Charge?

Local Advisors' mortgage-adviser matching service is free for customers.

We introduce people looking for mortgage advice to advisers covering their area.

There's no charge for using our matching service, and there's no obligation to proceed with the adviser you're introduced to.

Any fees for regulated mortgage advice are separate and should be explained by the adviser before you agree to use their services.

Local Advisors is an introduction service, not an FCA-authorised mortgage adviser. We don't provide personalised mortgage recommendations.

Frequently Asked Questions

How much does a mortgage advisor cost in the UK?

Fees vary. MoneyHelper gives examples of approximately £300–£1,000 or percentage-based charges, although some advisers don't charge customers directly and instead receive lender commission.

Can I get mortgage advice without paying a broker fee?

Yes. Some advisers receive commission from mortgage lenders rather than charging customers directly. You should still compare the overall mortgage costs and understand how the adviser is paid.

Do mortgage brokers charge before getting a mortgage?

Some do, while others charge at a later stage. Ask when the fee becomes payable and whether any refund is available if the application doesn't proceed.

Is a mortgage advisor worth paying for?

That depends on the service, your circumstances, the available mortgage options and the total costs involved. A fee alone doesn't establish whether an adviser offers good value.

Does Local Advisors charge customers?

No. Local Advisors provides a free mortgage-adviser matching service. Any advice fees are agreed separately with the adviser.

Find a Local Mortgage Advisor

Ready to speak to a mortgage adviser?

Whether you're buying your first home, moving, remortgaging or exploring a buy-to-let mortgage, Local Advisors can help you find a mortgage adviser covering your area.

• ✓ Free matching service
• ✓ Free initial consultation
• ✓ No obligation to proceed

Find My Mortgage Adviser

Local Advisors introduces customers to mortgage advisers. Regulated mortgage advice is provided by the adviser you're introduced to, and any applicable advice fees are agreed separately.

Sources and Further Reading

MoneyHelper: Financial Adviser Fees — guidance on typical charges, payment methods and lender commission.

MoneyHelper: Mortgage Advice — information about adviser services, fees and comparing mortgage options.

Financial Conduct Authority: Mortgage Rule Review, CP25/11 — published analysis of intermediary fees.