When it comes to mortgages, most borrowers ask about interest rates first. But in 2025, with rates shifting almost weekly and products being withdrawn and relaunched at speed, one of the most important questions you should be asking is: What is my broker charging me—and is it fair?
Mortgage broker fees have always varied, but in today’s market the differences can be striking. Some brokers charge nothing upfront, others demand several thousand pounds, and many rely on commission from lenders. Unless you understand how fees are structured and why, you risk either overpaying or being nudged toward a product that isn’t right for you.
In Why Your Mortgage Broker Might Be Costing You Thousands, we explored the risks of poor advice. Here, we go deeper into how broker fees actually work, what’s fair in 2025, and how to ensure you’re getting value rather than simply a bigger bill.
There are three broad approaches to broker remuneration: fixed fees, percentage-based fees, and commission-only models. While all are allowed under FCA rules, the transparency and fairness of each approach can vary widely.
Fixed fees are often attractive to borrowers who want certainty. You know upfront what you’ll pay, regardless of the loan size. For example, a broker may charge £495 for arranging a residential mortgage.
Percentage-based fees are common at the higher end of the market. A broker might charge 0.5% of the loan amount, which means arranging a £2 million mortgage could cost £10,000 in fees. This model is more justifiable for complex, high-value deals where bespoke structuring is required, such as private bank lending for high-net-worth clients.
Commission-only brokers don’t charge the client directly but are paid by the lender once the mortgage completes. At first glance, this looks like the cheapest option, but it can create conflicts of interest. If a lender pays higher commission than others, is the broker really recommending the best deal for you—or the most lucrative one for them?
In the past, brokers were often clustered around a standard fee range. But in 2025, the spread is far broader, partly because of rising compliance costs, partly because of network agreements, and partly due to the growing complexity of client needs.
At Willow, for example, we may spend weeks packaging a complex expat or HNW application, liaising with lawyers, accountants, and banks to structure the deal. That level of work justifies a higher fee compared to arranging a straightforward residential mortgage.
What matters most is not the number, but the clarity. A fair broker in 2025 will tell you:
Unfortunately, too many borrowers still sign paperwork without understanding these points. The FCA requires disclosure, but as we highlighted in Should You Use a Mortgage Broker or Go Direct in 2025?, disclosure is not the same as understanding. A good broker will break down the numbers in plain English before you sign anything.
A client recently came to Willow after initially using a “free” broker recommended by a friend. That broker only had access to a restricted panel of lenders and steered the client into a product that offered a higher commission rate. On paper, it looked like a deal—no fee to the client. But the mortgage itself carried a higher interest rate and early repayment charges that cost the borrower over £20,000 more over the life of the loan.
By the time they approached us, we were able to restructure their borrowing with a private bank, reducing the long-term cost dramatically. The lesson: “free” isn’t always free.
Not every high fee is unfair. Some scenarios genuinely require more work, negotiation, and expertise. Consider:
In each of these cases, the broker is not just ticking boxes—they are effectively building a financial case and persuading a lender to structure terms that may not exist off-the-shelf. A percentage-based fee in these cases reflects the value delivered, not simply the loan size.
By contrast, there are warning signs that a fee structure may be unfair:
If you’re unsure, ask the broker to explain why their fee is fair in relation to the work involved. If they can’t answer convincingly, it’s a problem.
First-Time Buyer
A broker charging £500 for securing a £200,000 mortgage may be offering a fair deal. The work is modest but still requires advice, compliance, and packaging.
Portfolio Landlord
A broker may charge £1,500–£2,000 to refinance multiple properties, reflecting the added complexity of stress testing, portfolio underwriting, and lender negotiation. This aligns with the insights we shared in Portfolio Mortgages in 2025.
High-Net-Worth Borrower
For a £5 million loan negotiated with a private bank, a fee of 0.5% (£25,000) may sound steep—but if the bespoke terms save the borrower hundreds of thousands in interest and structure tax-efficiently, the fee is more than justified. See our guide on How to Get a £5 Million+ Mortgage in 2025.
In 2025 and beyond, we expect to see even greater divergence in broker fees, driven by:
Ultimately, the test will remain the same: clarity, transparency, and outcomes. A broker should be able to demonstrate why their fee is justified and how it benefits you.
At Willow Private Finance, we are fully transparent about our fees. We explain upfront what you’ll pay, when you’ll pay it, and why. Our structure reflects the complexity of your case, not simply the loan amount, and we remain independent, whole-of-market, and committed to acting in your best interests.
Whether you are a first-time buyer or seeking a multi-million-pound loan with a private bank, you will always know exactly what you’re paying for and the value we bring.
How do mortgage brokers typically charge their clients in 2025?
They use one of three main methods: fixed fee (a set amount regardless of loan size), percentage-based fee (a proportion of the loan amount), or commission-only (paid by the lender rather than by the client).
Willow Private Finance
Why do fees vary so widely between brokers?
Variation comes from differences in complexity of the case (HNW, expats, development lending), compliance and regulatory costs, broker networks, and the amount of packaging required for non-standard situations.
Willow Private Finance
Is it a red flag if a broker charges no upfront fee?
Not necessarily, but it can create conflicts of interest: brokers relying solely on commission may steer you into products offering higher fees from lenders rather than the best deal for you.
Willow Private Finance
When is it reasonable for a broker to charge a higher fee?
In cases requiring bespoke structuring: high-net-worth clients, cross-jurisdiction income, development or complex financing, or bespoke private bank deals—these demand more work, negotiation, and documentation.
Willow Private Finance
What transparency should you demand from a broker about fees?
You should insist on:
How does Willow approach fees?
Willow is transparent up front: you’ll know exactly what you pay, when, and why. Their fee reflects the complexity of your case rather than just the loan size.
Willow Private Finance
Book a free strategy call with one of our mortgage specialists.
We’ll help you find the smartest way forward—whatever rates do next.
About the Author – Wesley Ranger
Director & Founder, Willow Private Finance
Wesley Ranger founded Willow Private Finance in 2008 and has since grown it into a leading independent, whole-of-market brokerage. With deep expertise in complex and high-value lending, Wesley and his team specialise in helping clients secure solutions where others cannot—whether for prime London property, international buyers, or high-net-worth borrowers requiring bespoke finance.
Important Notice
The information in this article is provided for guidance only and does not constitute financial advice. Mortgage availability and criteria are subject to change. Always seek personalised advice before committing to any financial product. Willow Private Finance Ltd is authorised and regulated by the Financial Conduct Authority (FCA No. 588422).
