All residential mortgage advisers in the UK are paid a procuration fee (commission) by the lender when a remortgage completes. Some advisers also charge the customer an additional fee, usually between £300-£1,000, while others do not. Any customer fee is charged on top of the lender payment and varies depending on the adviser and the complexity of the case.
This is a common question for homeowners reviewing their options at the end of a mortgage deal. Understanding how mortgage adviser charges work can help set expectations and clarify what costs may apply when remortgaging.
This guide explains how mortgage advisers are paid, when customer fees may be charged, how much those fees typically are, and what they usually cover.
How Are Mortgage Advisers Paid for a Remortgage?
In the UK, all regulated residential mortgage advisers receive a procuration fee from the lender when a mortgage or remortgage completes. This payment is made by the lender and does not come directly from the borrower.
The procuration fee is a standard part of the mortgage market and applies whether the adviser charges the customer an additional fee or not.
Separately, advisers may choose to charge the customer a fee for their service. This is optional and varies between advisers.
Do Mortgage Advisers Charge Customers for Remortgaging?
Some do, and some do not.
Many advisers offer fee-free remortgage advice, meaning they do not charge the customer directly and rely solely on the lender’s procuration fee.
Other advisers charge a customer fee, commonly referred to as an advice fee, on top of the lender payment. This is more common where:
- The case is complex
- Circumstances have changed
- Specialist lenders are required
- Additional work or ongoing support is involved
Advisers must disclose any customer fees clearly before proceeding.
Typical Customer Fees for Remortgage Advice
There is no standard customer fee, but common approaches include:
- No customer fee
- Fixed fee, often between £300 and £1,000
- Percentage-based fee, typically a small percentage of the loan
- Combination approach, where a reduced fee is charged alongside the lender payment
For straightforward remortgages with no changes, many homeowners find that fee-free options are widely available.
Why Do Some Advisers Charge a Customer Fee?
Customer fees usually reflect the level of work involved rather than replacing the lender payment.
More complex remortgages may require:
- Detailed affordability assessment
- Specialist lender research
- Structuring around self-employment or variable income
- Managing changes to ownership or borrowing
- Additional administration and support
Charging a fee allows some advisers to dedicate more time and resource to complex cases and offer better support post-application.
When Are Customer Fees Paid?
This varies by adviser and should always be explained upfront.
Customer fees may be charged:
- On application
- On mortgage offer
- On completion
Some advisers refund or reduce fees if a remortgage does not complete, while others retain them to cover work already carried out.
Does Fee-Free Mean Limited Choice?
Not necessarily.
Many fee-free advisers still offer whole-of-market access and arrange remortgages across a wide range of lenders. Fee-free does not automatically mean restricted choice, although it is always sensible to ask how broad an adviser’s lender panel is.
What Do Mortgage Adviser Fees Cover?
Whether a fee is charged or not, the adviser’s service usually includes:
- Reviewing the existing mortgage
- Comparing remortgage options
- Explaining rates, fees and deal structures
- Submitting and managing the application
- Liaising with lenders and solicitors
- Supporting the process through to completion
The difference is whether the adviser charges the customer separately for this service.
Are Adviser Fees the Only Cost of Remortgaging?
No. Adviser fees are separate from other remortgage costs, which may include:
- Mortgage arrangement fees
- Valuation fees
- Legal or conveyancing costs
- Early repayment charges, if applicable
Understanding the total cost of remortgaging means considering all of these together.
Is Using a Mortgage Adviser Required?
No. Homeowners are not required to use a mortgage adviser when remortgaging.
Some borrowers arrange a product transfer directly with their existing lender or apply themselves. Others choose to use an adviser to help compare options, particularly where circumstances are more complex or where clarity and reassurance are important.
Finding an Adviser and Understanding Their Charges
For homeowners who want to compare advisers and understand how they charge, our Best Remortgage Advisers Guide highlights advisers who regularly help borrowers review remortgage options, including those who offer fee-free services and those who charge customer fees for more complex cases.
Conclusion
All residential mortgage advisers in the UK are paid by the lender when a remortgage completes. Some advisers also charge the customer an additional fee, while others do not.
Customer fees vary depending on the adviser and the complexity of the case. Understanding how advisers are paid, whether a customer fee applies, and what that fee covers can help homeowners approach remortgaging with clearer expectations and fewer surprises.
