At Willow Private Finance, there is no charge to speak to one of our specialist advisors and no charge for us to assess your requirements and identify suitable finance solutions.
We'll take the time to understand your circumstances, review your objectives and explore the options available to you before you decide whether you want to proceed.
Should you wish to move forward with a recommended solution, any applicable fees will be clearly explained and agreed in advance, ensuring complete transparency from the outset.
Once instructed, we'll manage the process from application through to completion, liaising with lenders, solicitors, valuers and other professionals involved in the transaction to help secure the funding you require.
Read our latest expert analysis covering mortgage rates, lender criteria, property market trends, buy-to-let, bridging finance, development finance, expat lending and specialist property finance.
When it comes to mortgages, most borrowers ask about interest rates first. But with rates shifting almost weekly and products being withdrawn and relaunched at speed, one of the most important questions you should be asking is: What is my broker charging me, and is it fair?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 £499 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 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 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.
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.
How do mortgage brokers typically charge for their services?
Most mortgage brokers charge in one of three ways: a fixed fee, a percentage of the loan amount, or through commission paid by the lender. Some use a combination of lender commission and a client fee, particularly for more complex cases. A reputable broker should always explain their charging structure clearly before any work begins.
Is it better to choose a broker with no fees?
Not necessarily. Fee-free brokers can provide excellent service, particularly for straightforward residential mortgages, as they are often paid solely by the lender. However, more complex borrowing involving high-net-worth clients, development finance, bridging loans or private banking may require additional work that justifies a separate professional fee.
Why do some brokers charge a percentage of the mortgage amount?
Percentage-based fees are most common where transactions require significant structuring, negotiation and specialist expertise. While the loan amount influences the fee, the real justification should be the complexity of the work involved rather than the size of the mortgage alone.
Should a broker explain exactly what their fee covers?
Yes. Before you proceed, you should receive a clear explanation of how the broker is paid, when any fees become payable, whether they are refundable, and exactly what services are included. Transparency is one of the hallmarks of a professional mortgage adviser.
Can a higher broker fee actually save me money?
In many cases, yes. An experienced broker may secure access to lenders, products or funding structures that are unavailable directly to consumers. A slightly higher fee can often be outweighed by lower borrowing costs, improved lending terms or a solution that enables the transaction to proceed when other lenders have declined.
Are mortgage broker fees regulated?
Mortgage brokers authorised by the Financial Conduct Authority (FCA) must disclose their fees clearly and treat customers fairly. Before undertaking regulated mortgage business, they must provide information explaining their charges and how they are remunerated.
What should I do if a broker's fees seem unusually high?
Ask them to explain how the fee reflects the work involved. A reputable broker should be able to demonstrate the complexity of the case, the value they expect to add, and why their charging structure is appropriate. If the explanation is vague or unconvincing, it is sensible to seek a second opinion.
Do specialist mortgages usually involve higher broker fees?
Often they do. Cases involving complex income, private banking, development finance, commercial mortgages, bridging loans, expat lending or high-value transactions generally require considerably more research, lender negotiation and case management than a standard residential mortgage, making higher professional fees more common.
Can I negotiate a mortgage broker's fee?
Sometimes. While many brokers have fixed charging structures, others may have flexibility depending on the size, complexity or future relationship potential of the case. It is perfectly reasonable to discuss fees before formally instructing a broker.
How can I tell if I'm receiving good value?
The cheapest broker is not always the best choice. Good value comes from receiving expert advice, access to appropriate lenders, efficient case management and a funding solution that supports your wider financial objectives. A broker who saves you time, secures better lending terms or successfully places a complex case may represent excellent value regardless of whether their fee is the lowest.
Tailored advice for individuals, businesses and professional advisers seeking sophisticated financial solutions.
At Willow Private Finance, we understand that every client has different ambitions, financial circumstances and long-term objectives. Whether you are purchasing property, refinancing existing borrowing, protecting your family or business, or looking to unlock wealth through specialist lending, we build solutions around your individual needs rather than forcing you into standard products.
As an independent, whole-of-market brokerage, we provide access to residential mortgages, buy-to-let finance, bridging loans, development finance, commercial lending, private banking and Lombard lending facilities, alongside a comprehensive range of personal and business protection solutions. Our expertise extends to UK and international clients, high-net-worth individuals, company directors, investors, expatriates and borrowers with complex financial structures.
By combining deep technical expertise with relationships across mainstream lenders, specialist lenders and private banks, we help clients secure funding, structure borrowing efficiently and protect the assets, income and people that matter most. Whatever stage of your financial journey you are at, our team is here to provide clear, strategic advice that delivers confidence and long-term value.
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).
