Mortgage broker fees in the UK typically range from £0 to £500. Brokers are also paid a commission called a procuration fee by the lender when a mortgage completes. This guide explains every type of broker fee, how procuration fees work, what to look out for, and exactly what Woodhall Mortgages charges.
Mortgage broker fees in the UK typically range from £0 to £500 for standard cases. Brokers are also paid a procuration fee (commission) by the lender, typically 0.35% to 0.5% of the loan, when a mortgage completes. FCA rules require all fees to be disclosed before any recommendation is made. Woodhall Mortgages charges £299, payable only after a formal mortgage offer. The initial discussion is free.
Mortgage broker prices vary significantly depending on how the broker structures their fees, whether they charge the client directly or rely solely on lender commission, and the complexity of the application. Mortgage advisor fees and finance broker fees follow broadly the same models across the industry.
Mortgage brokers in the UK charge clients in several different ways. Understanding the fee structure before you engage a broker means there are no surprises at the point of mortgage offer.
| Fee type | How it works | Typical amount | Watch out for |
|---|---|---|---|
| Fixed broker fee | A set amount regardless of loan size. The most common structure for standard residential and remortgage cases. Common market rates are £299, £395 or £499. | £250 to £500 | Whether the fee is charged upfront or only after a formal mortgage offer |
| Percentage of loan | A percentage of the mortgage amount. On a standard £250,000 mortgage at 1%, that is £2,500, significantly more than a flat fee for the same work. | 0.3% to 1% | Always ask for the £ amount, not just the percentage. Large mortgages produce very high fees. |
| No client fee (fee-free) | Broker charges nothing to the client. Paid entirely through lender procuration fee. Common at online brokers and comparison sites. | £0 | Check whether the broker is whole-of-market or restricted to specific lenders |
| Complex case fee | Higher fee for non-standard applications: self-employed income, adverse credit, unusual property types, or portfolio landlord cases. | £500 to £1,500+ | Should reflect genuine additional work. Ask upfront what is included and whether any fee is refundable if no mortgage is found. |
Some brokers charge a fee before any advice is given or a mortgage is found. If a broker requests several hundred pounds before providing a mortgage illustration or beginning the application, treat this with caution. A reputable broker typically charges nothing until you have received a formal mortgage offer and chosen to proceed. This aligns the broker's incentive with your outcome.
All FCA-authorised mortgage brokers must disclose their fee and any commission received from lenders before making a mortgage recommendation. This disclosure appears in the Key Facts Illustration (KFI) or European Standardised Information Sheet (ESIS) provided before the mortgage offer stage. If a broker cannot tell you clearly how they are paid and how much, ask directly before proceeding.
In addition to any fee charged to the client, most mortgage brokers receive a procuration fee from the lender when a mortgage application completes successfully.
A procuration fee (sometimes called a "proc fee") is a commission paid by the mortgage lender to the broker when a mortgage application completes. It is typically 0.35% to 0.5% of the loan amount. On a £200,000 mortgage at 0.4%, that is £800 paid to the broker by the lender. The procuration fee comes from the lender's own margin. It is not added to your mortgage and does not affect your interest rate. FCA regulations require full disclosure of this payment.
| Loan amount | Proc fee at 0.35% | Proc fee at 0.4% | Proc fee at 0.5% |
|---|---|---|---|
| £150,000 | £525 | £600 | £750 |
| £200,000 | £700 | £800 | £1,000 |
| £300,000 | £1,050 | £1,200 | £1,500 |
| £400,000 | £1,400 | £1,600 | £2,000 |
The procuration fee is paid by the lender from their own margin, not by the borrower. It does not affect your mortgage rate or the amount you repay. FCA rules require every broker to tell you exactly how much commission they receive before recommending a mortgage.
Procuration fees vary by lender and product type. Some lenders pay higher proc fees than others, which could theoretically influence which lender a broker recommends. FCA regulations address this through the "fair and appropriate" suitability standard: brokers must recommend the most suitable product for the client regardless of commission level. A whole-of-market broker has access to a comprehensive range of lenders and is not restricted to those paying the highest commission.
We think a broker fee should only be payable if you actually get a mortgage offer. Here is exactly how our fee structure works.
Initial discussion: free. There is no charge for an initial conversation about your mortgage needs, borrowing capacity or the options available to you.
Broker fee: £299, payable only if you choose to proceed following a formal mortgage offer. This fee is non-refundable once charged.
Lender commission: We may also receive a procuration fee from the lender when the mortgage completes. The exact amount is disclosed in your mortgage illustration before any recommendation is made.
We do not charge an upfront fee, a research fee, or any fee at any stage before a formal mortgage offer is issued.
Our £299 fee is at the lower end of the market for whole-of-market advice. It applies to standard residential purchases, remortgages and buy-to-let mortgages. For more complex cases, such as applications with significant adverse credit, complex self-employed income, or portfolio landlord assessments, we confirm any variation to the standard fee before beginning the application.
No. A mortgage broker fee cannot be added to a residential mortgage in the UK. It is a service charge payable separately from the mortgage itself and must be paid from your own funds. It is not the same as a mortgage product arrangement fee, which can sometimes be added to the loan. Some borrowers confuse the two. The lender arrangement fee (charged by the lender, not the broker) can sometimes be added to the mortgage balance, though doing so means paying interest on it for the full term. The broker fee is always paid directly to the broker, separately.
If you are comparing mortgage brokers, you will come across both fee-free and fee-charging options. Understanding the difference, and the trade-offs, helps you make the right choice for your circumstances.
| Fee-free broker | Fee-charging broker (e.g. Woodhall) | |
|---|---|---|
| Client fee | £0 | £299 (on formal mortgage offer) |
| How they are paid | Lender procuration fee only | Procuration fee + client fee |
| Lender access | Varies: some are whole-of-market, some are restricted | Whole-of-market |
| Specialist access | May not access niche lenders with lower proc fees | Includes specialist and niche lenders |
| Complex cases | Often routed to online tools or general advisers | Dedicated adviser handling throughout |
| Personalised advice | Variable: some online-led, some fully advised | Fully advised, one adviser throughout |
A fee-free broker is not automatically better or worse than a fee-charging one. What matters is whether the broker is whole-of-market (considering a comprehensive range of lenders) and whether the advice is genuinely tailored to your circumstances. Some fee-free brokers are whole-of-market with strong adviser access. Others are primarily online services that direct straightforward cases to a limited lender panel. For straightforward residential purchases on standard income, a fee-free whole-of-market broker is excellent value. For more complex cases, such as self-employed income, adverse credit, unusual property types, or larger portfolio lending, specialist adviser access often justifies a broker fee.
For most borrowers, whether a broker fee is worth it comes down to two things: whether they get access to a better rate, and how much time it saves them.
In most cases, yes. Here is the arithmetic to support it.
| Scenario | Broker fee paid | Rate saving vs direct | Monthly saving | Saving over 2-yr fix |
|---|---|---|---|---|
| £200,000 mortgage, 0.15% better rate | £299 | 0.15% | ~£25/month | ~£600 : net saving £301 |
| £200,000 mortgage, 0.25% better rate | £299 | 0.25% | ~£42/month | ~£1,008 : net saving £709 |
| £300,000 mortgage, 0.2% better rate | £299 | 0.20% | ~£50/month | ~£1,200 : net saving £901 |
Rate savings are illustrative. Actual savings depend on the specific products available at your LTV and circumstances. Brokers do not guarantee a lower rate than direct. They identify the most suitable product across a wider range of lenders.
Beyond the rate comparison, a broker's real value is often in the parts you don't see: knowing which lenders are likely to say yes before you run a credit search, chasing the lender when things stall, and sorting out problems that come up mid-application.
Call 01422 354011 or use the form below. We explain exactly what we charge and what you get before you commit to anything.
£299 broker fee payable on formal mortgage offer only. Non-refundable once charged.
Get Mortgage AdviceWoodhall Mortgages is a whole-of-market, FCA-authorised mortgage broker (FRN 762513) based in Halifax, West Yorkshire. Our broker fee is £299, payable on formal mortgage offer only. We also receive a procuration fee from the lender which is disclosed in your mortgage illustration. See our why use a mortgage broker guide and mortgage calculators for more.
Reviews and testimonials reflect individual experiences and do not guarantee outcomes.
As a whole-of-market mortgage broker, we consider mortgages from a comprehensive range of lenders. Our broker fee of £299 is payable only after you receive a formal mortgage offer and choose to proceed. Call 01422 354011 or use the form below.
A broker fee of £299 is payable if you choose to proceed following a formal mortgage offer. This fee is non-refundable once charged. We may also receive commission from the lender. Your home may be repossessed if you do not keep up repayments on your mortgage.
Get Mortgage AdviceFinancial promotion: This page is a financial promotion. Woodhall Mortgages is authorised and regulated by the Financial Conduct Authority (FRN 762513). As a whole-of-market mortgage broker, we consider mortgages from across the market, subject to lender criteria and product availability. Not all lenders or products may be included.
Broker fee: A broker fee of £299 is payable if you choose to proceed following a formal mortgage offer. This fee is non-refundable once charged. We may also receive a procuration fee from the lender. Both are disclosed in your mortgage illustration.
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