Yes, online mortgage brokers are regulated in the UK in the same way as traditional mortgage brokers who provide advice face-to-face. The method used to deliver advice, whether online, by phone or via video, does not change the regulatory requirements that apply to mortgage advice.
What matters is whether the broker is providing regulated mortgage advice. This article explains how regulation works for online mortgage brokers, who oversees them, and what this means for borrowers considering online mortgage advice.
Who regulates mortgage brokers in the UK?
Mortgage brokers in the UK are regulated by the Financial Conduct Authority (FCA). Any firm or individual providing regulated mortgage advice must be authorised by the FCA or act as an appointed representative of an authorised firm.
This applies equally to online mortgage brokers, telephone-based mortgage advisers and brokers offering advice face-to-face. If a broker is advising you on a regulated residential mortgage, they must meet FCA standards regardless of how that advice is delivered.
Does online mortgage advice follow the same rules as face-to-face advice?
Yes. The same regulatory rules apply.
Online mortgage brokers are required to assess whether a mortgage is suitable for your circumstances, explain their recommendation clearly, provide the appropriate disclosures, act in your best interests and treat customers fairly. The FCA does not distinguish between online advice and face-to-face advice when it comes to consumer protection.
Video calls, phone conversations and secure online systems are all recognised and acceptable ways of delivering regulated mortgage advice.
How can you check if an online mortgage broker is regulated?
You can check whether an online mortgage broker is regulated by searching the FCA Register. This shows whether a firm is authorised, what activities they are permitted to carry out and whether they are directly authorised or acting as an appointed representative.
Most reputable online mortgage brokers make their FCA status clear on their website, often in the footer or legal information section. If a firm offering regulated mortgage advice cannot be found on the FCA Register, this should raise concerns.
Are all mortgages regulated in the UK?
Not all mortgages are regulated, but most residential mortgages are.
Regulated mortgages typically include first-time buyer mortgages, home mover mortgages and remortgages on a main residence. Some types of lending, such as certain commercial mortgages or buy-to-let mortgages, may not be regulated in the same way.
A good online mortgage broker should be clear about whether the advice they are providing is regulated and explain this where relevant.
Are online mortgage brokers safe to use?
Using a properly authorised online mortgage broker is generally safe, provided basic checks are carried out.
Established brokers use secure systems to collect personal and financial information, upload documents and communicate with clients. They are also required to comply with data protection laws and FCA rules on record-keeping and transparency.
Borrowers should still verify a broker’s regulatory status, avoid sharing sensitive information through unsecured channels and ask questions if anything is unclear.
What protections do you have when using a regulated broker?
When you use a regulated online mortgage broker, you benefit from several consumer protections. These include the right to clear information about fees and commissions, the ability to make a complaint to the broker, and access to the Financial Ombudsman Service if a complaint cannot be resolved.
These protections apply regardless of whether the advice is delivered online or face-to-face.
How is online mortgage advice recorded?
Regulated mortgage advice must be properly documented. Online mortgage brokers typically keep records of fact-finding information, suitability assessments and communications with clients.
This may include written records, recorded phone calls or documented video meetings. These records help ensure accountability and provide an audit trail if any issues arise.
Does regulation limit how online mortgage brokers give advice?
Regulation affects what advisers must do, but it does not prevent flexibility in how advice is delivered.
Online mortgage brokers can still use digital fact-finds, offer video appointments, provide secure client portals and communicate by phone or email, as long as the advice itself meets regulatory standards.
Online mortgage brokers vs comparison sites
It’s important to distinguish between regulated online mortgage brokers and comparison sites. Comparison tools may display mortgage rates or products but do not assess suitability or provide personalised advice.
Online mortgage brokers, when offering advice, are regulated and must take individual circumstances into account. This distinction is an important part of understanding why regulation matters.
What should you look for in a regulated online mortgage broker?
When choosing an online mortgage broker, look for clear FCA authorisation details, transparent fee information, secure systems for sharing documents and clear explanations of recommendations. A well-run broker should also be open about how they work and how they are regulated.
Looking for regulated online mortgage brokers?
If you want to compare advisers who offer advice by phone, video and online systems, our Best Online Mortgage Brokers Guide highlights firms selected for their ability to support borrowers remotely while meeting UK regulatory standards.
