{"id":565,"date":"2024-05-06T14:13:48","date_gmt":"2024-05-06T13:13:48","guid":{"rendered":"https:\/\/www.rightmove.co.uk\/mortgages\/guides\/?page_id=565"},"modified":"2026-03-10T18:17:28","modified_gmt":"2026-03-10T18:17:28","slug":"mortgage-broker-adviser","status":"publish","type":"page","link":"https:\/\/www.rightmove.co.uk\/mortgages\/guides\/how-to-get-a-mortgage\/mortgage-broker-adviser\/","title":{"rendered":"What is a mortgage broker or adviser?"},"content":{"rendered":"\n

If you\u2019re getting ready to buy your own home, you can probably already imagine unpacking the boxes and picking out the paint colours. But there\u2019s one thing you might need help with arranging first: a mortgage loan. Mortgage brokers \u2013 also known as a mortgage advisers \u2013 can help you to find the best deal for you.<\/p>\n\n\n\n

They can also give you advice if you\u2019re remortgaging<\/a>, or help when you\u2019re purchasing a buy-to-let property. They\u2019ll step in to help if you\u2019ve already been turned down, or if you can\u2019t get what you need for a\u00a0mortgage<\/a>, or a\u00a0Mortgage in Principle<\/a>, and you\u2019re not sure why.<\/p>\n\n\n\n

Some brokers focus on helping buyers with specific circumstances, such as if you\u2019re self-employed, or have adverse credit.<\/p>\n\n\n\n

A mortgage broker will help you to work out how much you can borrow and what sort of mortgage to take out. They\u2019ll talk through your specific circumstances to help determine the best lender for you. And they can deal with the paperwork.<\/p>\n\n\n\n

What\u2019s the difference between a mortgage broker and a lender? <\/h2>\n\n\n\n

A mortgage broker can offer you independent advice by looking at a broad range of mortgage products and steer you through the application process.<\/p>\n\n\n\n

A mortgage lender is the bank or building society that will lend you the money to buy a home.<\/p>\n\n\n\n

A lot of lenders also have their own in-house advisers, to provide advice on their own products. Lenders\u2019 advisers are also regulated by the Financial Conduct Authority<\/a> (FCA) and will look at all the same factors as brokers when making a recommendation.<\/p>\n\n\n\n

What do mortgage brokers do?<\/h2>\n\n\n\n

They\u2019ll use their expert knowledge of the mortgage market to assess which deals you\u2019re most likely to qualify for. They can search through products faster than you\u2019ll be able to. They\u2019ll also help with your application.<\/p>\n\n\n\n

A broker should tell you about the range of mortgages they offer. Some brokers only cover products from certain lenders. If you\u2019re taking out an online mortgage, they must provide this in writing before you select the deal you want.<\/p>\n\n\n\n

My application for a mortgage was unsuccessful \u2013 should I check if a mortgage broker could help?<\/h2>\n\n\n\n

Absolutely. Being turned down for a mortgage can feel really disappointing. But it doesn\u2019t mean you won\u2019t find one to suit you and your circumstances.<\/p>\n\n\n\n

The criteria used to assess mortgage applications varies between lenders. A broker will understand a range of lenders\u2019 criteria and can recommend one that is more likely to lend to you. For example, if you\u2019re freelance or self-employed, or have just started a new job. They can also help you find lenders that will be able you help you if you have a poor credit rating.<\/p>\n\n\n\n

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What questions should I ask a mortgage broker?<\/h2>\n\n\n\n

Check your chosen broker is authorised and regulated by the FCA. Also, don\u2019t be shy to ask how much they will charge and if they can help with your specific circumstances.<\/p>\n\n\n\n

Some mortgage products are only available via brokers, but others are only offered to direct applicants. Brokers aren\u2019t obliged to tell you about these \u2018direct only\u2019 mortgages, but it\u2019s worth asking if there are any that could be cheaper for you.<\/p>\n\n\n\n

How does a mortgage broker get paid?<\/h2>\n\n\n\n

It varies. The vast majority of brokers get paid commission from the lender, which is usually a small percentage of the size of your loan. You can ask the broker about this too, but it will also be provided in the mortgage illustration. This document outlines every detail of your mortgage deal.<\/p>\n\n\n\n

Brokers also get commission from other products you buy from them, such as home insurance. Because of this, some may not charge you for their service, but others may charge a range of fees.<\/p>\n\n\n\n

According to the Financial Conduct Authority (FCA), some charge a flat fee, some go for a percentage of the amount you\u2019re borrowing. Others may ask for an hourly rate. If that\u2019s the case, they are required to tell you what might affect the number of hours they spend on your application. You might be able to add the fee to your mortgage, but it will depend on the lender, so ask your broker what the options are. This would mean you\u2019ll pay interest on the fee as well as the rest of the mortgage, until the whole mortgage is paid off.<\/p>\n\n\n\n

The average cost of a mortgage broker varies, but you could expect to pay between \u00a3500 and \u00a31,500. The fee might depend on the value of the mortgage, in which case, as a rule of thumb, the fee may be between 0.3% to 1% of the loan amount, or more if your case is complex.<\/p>\n\n\n\n

What will happen when I instruct a mortgage broker?<\/h2>\n\n\n\n

Your broker will explain the different types of mortgages and which one they feel would work best for you.<\/p>\n\n\n\n

You can arrange to meet in person, set up a call, or you can use an online mortgage broker. To save time, make sure you have your financial documentation with you.<\/p>\n\n\n\n

The exact documents that you need to provide will depend on the lender that your broker recommends. Most lenders and brokers accept digital or paper versions of online statements and payslips if they clearly display key information, such as company logos and website details, to demonstrate that they are legitimate.<\/p>\n\n\n\n

What will a mortgage broker ask me for?<\/h2>\n\n\n\n

Identification documents<\/h3>\n\n\n\n

Such as a current passport or driving licence, a recent utility bill and bank statements from the last three months.<\/p>\n\n\n\n

Proof of income<\/h3>\n\n\n\n

You\u2019ll be asked to provide recent payslips, or if you\u2019re self-employed, copies of your tax calculations and tax year overviews. And make sure you can provide documentation of any other income you receive.<\/p>\n\n\n\n

Financial records<\/h3>\n\n\n\n

Including recent bank statements which show payments coming in and out, including debts, such as loan and credit card payments, and other expenses. You\u2019ll also be asked to provide proof of where your deposit is coming from.<\/p>\n\n\n\n

And when you\u2019ve found a home you want to make an offer on, your broker can make a full mortgage application for you.<\/p>\n\n\n