In the UK, mortgage advisers are always paid by the lender when a mortgage completes. Some advisers also charge the customer an additional fee, while others do not. Where a customer fee applies, it is usually a fixed amount, often ranging from a few hundred pounds up to around £1,000, depending on the adviser and the complexity of the case.
This is a common question for borrowers arranging a first mortgage, moving home, or reviewing a remortgage. Understanding how mortgage adviser costs work can help set clear expectations and make it easier to compare advisers.
This guide explains how mortgage advisers are paid, what customer fees typically look like, when they apply, and what they usually cover, without assuming that paying a fee is always necessary.
How Are Mortgage Advisers Paid?
All regulated residential mortgage advisers in the UK 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.
On top of this, advisers can choose whether to charge the customer an additional fee for their service. This is optional and varies between advisers.
As a result, how much you usually pay a mortgage adviser depends on whether that adviser charges a customer fee, not on whether they are paid by the lender.
Do You Always Have to Pay a Mortgage Adviser?
No. Many mortgage advisers do not charge the customer a fee at all.
Fee-free advisers rely solely on the lender’s payment and are common across the UK, particularly for straightforward cases such as standard purchases or remortgages where circumstances are simple.
Other advisers charge a customer fee in addition to the lender payment. This does not replace the lender’s fee, but reflects how the adviser chooses to structure their business.
Typical Customer Fees for Mortgage Advice
Where a customer fee applies, it is usually structured in one of the following ways:
- No customer fee
- Fixed fee, commonly between £300 and £1,000
- Percentage-based fee, calculated as a small percentage of the loan
- Combination approach, with a reduced fee alongside the lender payment
There is no industry-wide standard, which is why it is important to ask each adviser how they charge.
Why Do Some Mortgage Advisers Charge Fees?
Advisers who charge customer fees often do so to reflect the level of work involved in the case.
More complex situations may require:
- Detailed affordability assessments
- Specialist lender research
- Structuring around self-employment or variable income
- Managing changes such as remortgages with additional borrowing
Charging a fee can allow advisers to dedicate more time and resource to these cases.
What Does a Mortgage Adviser Fee Usually Cover?
Whether or not a customer fee is charged, the adviser’s service typically includes:
- Reviewing your circumstances and goals
- Searching available mortgage options
- Explaining rates, fees, and mortgage features
- Submitting and managing the application
- Liaising with lenders and solicitors
- Supporting the process through to completion
The difference is whether the adviser charges separately for this service.
When Are Adviser Fees Paid?
This varies by adviser and should always be explained upfront.
Customer fees may be charged:
- At the start of the process
- On application
- On mortgage offer
- On completion
Some advisers refund or reduce fees if a mortgage does not complete, while others retain them to cover work already carried out.
Are Adviser Fees the Only Cost?
No. Adviser fees are separate from other mortgage-related costs, which may include:
- Lender arrangement fees
- Valuation fees
- Legal or conveyancing costs
- Early repayment charges, if applicable
Understanding the overall cost of a mortgage means considering all of these together.
Is Paying a Fee Worth It?
Whether paying a mortgage adviser fee is worthwhile depends on the individual borrower and the complexity of the case.
For straightforward mortgages, many borrowers are comfortable using a fee-free adviser. For more complex situations, some borrowers prefer the additional support and time that may come with a fee-charging service.
Neither approach is inherently better, as long as fees are clearly explained and understood.
Finding Advisers and Comparing Fees
For borrowers who want to compare advisers and understand how they charge, using a directory-style guide can be helpful.
Our Best Mortgage Brokers Guide brings together local, national, and online advisers, making it easier to see who charges fees, who does not, and how different advisers structure their service.
Conclusion
You do not always pay a mortgage adviser directly. All UK residential mortgage advisers are paid by the lender, and some also charge the customer an additional fee.
Where customer fees apply, they are usually a fixed amount and vary depending on the adviser and the complexity of the case. Understanding how advisers are paid and what any fees cover can help borrowers choose an adviser with confidence and clarity.
