How much do mortgage advisors charge in 2021

Who are mortgage advisors in the UK?

A mortgage advisor is a trained expert who focuses on locating the best mortgage offer for your particular needs. They are frequently referred to as mortgage brokers, however, there is no actual distinction between being an adviser and a dealer/broker. The sole distinction between autonomous and ‘tied’ mortgage brokers that you should be aware of is that an independent broker can locate mortgages throughout the whole UK property market, but a linked broker is limited to a few providers and may not be equipped to get as good an opportunity for investment in the UK property market.

Why are mortgage advisors recommended?

If you’re a first-time buyer, you’ll benefit the most from mortgage guidance because the registration process is a little more difficult. A mortgage broker, on the other hand, may help with any type of mortgage application.

Remortgaging, purchasing your next house, or getting a second residence, particularly if you do need to borrow more, are examples of situations when you could require guidance. An adviser can also help you locate the specific mortgages you’ll want if you’re buying a rental property, a company, or a vacation house. Finally, through equity release, mortgage guidance can give you insight into the worth of your property later in life.

The usual rates for mortgage advisory in the UK property market:

A mortgage advisor can cost anywhere between £400 and £500, with the financial adviser getting compensation from the lenders rather than a straightforward payment. In certain situations, the dealer will ask for either a fee or compensation and in others, they will collect both.

However, as the main investor in the buying process, it is your right to know whether your broker is going for the option of keeping the profit margin from the lender or just asking for fees in the process. It is recommended to everyone to be aware of the option that your mortgage advisor might be going for.

There are some fees which won’t reflect in your final bill and are exclusively for the broker themselves. Every mortgage broker within the UK must either be regulated by the FCA (Financial Conduct Authority) or be the agent of a regulated firm and must pay a fee to be regulated.

Commission or fees?

Generally speaking, there should not be any difference in the services rendered to you, whether they are based on commission or fees. The general consensus among the mortgage brokers is that the services given should not really depend on the mode of income. As for the buyer side, you should ask your mortgage advisor if they are tied to some corporation or are independent in their work. As expected, the independent mortgage advisors have far more autonomy in their workings. They can scope out any area of the UK at your request. Independent mortgage advisers in the UK, are therefore considered better overall as compared to those tied down somewhere.

Understanding commission:

The complication with the commission is that often at times, the broker might keep in mind their own cut more than what is best for you. The usual commission rates in the UK property market are about 0.35 percent of the size of the mortgage. And therefore, the mortgage brokers of the UK might try to find a deal that isn’t right for you financially but gets them a big cut. So it is recommended to communicate on honest terms with your broker about what is happening.

Understanding the fees for mortgage advisors:

In case of a fee, the rate might lie between 0.3 to about 1% of the loan taken, and no matter the size of the mortgage, you should not be paying more than this. If you and your broker agree upon settlement by fees, it is recommended that you get a written agreement about the fee’s charges when it will be paid, and all other little intricacies as well.

Our advice to you:

The difference between the two types is often shown in the charges incurred by the mortgage buyer. The independent ones sometimes cost more than the associated ones.

While you are looking for a mortgage adviser in the UK, you should also keep in mind that if a mortgage buyer is asking for compensation in the form of commission, then he/she might find that their services are not being paid for in full, in case the mortgage is of a smaller magnitude. Therefore, it is recommended to deal with an upfront fee to your mortgage advisor so that they can perform their service without any burden of mind of their compensation, and whether it will be enough or not.

There are a lot of autonomous mortgage advisors representatives to look over and the decision can be fairly confounding so we have explored the mortgage market and made it accessible to our readers one of the most innovative independent mortgage advisers in the UK, Mortgage Brokers Directory(MBD).


The best mortgage advisor in the UK will make sure you get your value for money. And therefore, with a little deliberation, you can reach a good deal that is not a burden on your pockets as well.