A mortgage broker can make finding and arranging a mortgage easier, especially if your circumstances are not straightforward. This guide explains using a mortgage broker: what a broker does, the difference between whole-of-market and restricted brokers, the benefits, how brokers are paid, and when a broker is especially worth using.
What a mortgage broker does
A mortgage broker is a qualified, regulated adviser who searches the market for a suitable mortgage, advises you on your options, and helps manage your application with the lender, as our guide to how a mortgage works explains. Rather than approaching lenders yourself, you use a broker's knowledge of the market to find a deal that fits your circumstances and to guide you through the process, which many borrowers find valuable.
Whole-of-market versus restricted
Brokers differ in how much of the market they cover: a whole-of-market broker can consider mortgages from across the market, while a restricted or tied broker covers only certain lenders. A whole-of-market broker can usually compare more options, which is often an advantage. So it is worth asking a broker how much of the market they cover, as this affects the range of deals they can find for you.
The benefits of a broker
Using a broker has several benefits: access to a wide range of lenders and sometimes deals not available directly, expert advice tailored to your situation, help navigating the application, and time saved searching yourself, as our guide to getting the best rate explains. A good broker can also improve your chances by matching you to a lender likely to accept you, which is particularly valuable in trickier cases.
How brokers are paid
Brokers are paid in different ways: some are fee-free, earning commission from the lender, while others charge you a fee, which may be a set amount or a percentage of the loan, and some do both. So it is important to understand how a broker is paid before proceeding. A broker must be clear about their fees, and you can weigh any fee against the value of their advice and the deal they find.
Broker versus going direct
You can apply for a mortgage directly with a lender, but a lender only offers its own products, while a broker can compare many, as our guide to the application process explains. Going direct may suit a simple case with a lender you know, but a broker's wider view and expertise often find a better deal or a lender more likely to accept you, especially if your situation is not straightforward.
When a broker especially helps
A broker is especially valuable if your circumstances are complex, for example if you are self-employed, have variable or complex income, have adverse credit, are an older borrower, or need a specialist mortgage, as our guide to getting later life advice relates. In these cases, knowing which lenders to approach makes a real difference, so a broker's expertise can be the key to securing a suitable mortgage.
Choosing a broker
When choosing a broker, check they are qualified and regulated by the Financial Conduct Authority, ask how much of the market they cover and how they are paid, and consider whether they have experience with your type of case, as our guide to mortgage terms relates. A good, independent, whole-of-market broker who is transparent about fees and experienced with your situation is well placed to help you.
Independent versus tied advice
Brokers can be independent, considering the whole market, or tied to one or a few lenders, offering a narrower range. Independent, whole-of-market advice usually gives the widest choice and the best chance of finding a suitable deal, as our guide to getting the best rate relates. So it is worth asking about a broker's independence, since it shapes how many lenders and deals they can consider for you.
What a broker handles for you
Beyond finding a deal, a broker can handle much of the legwork: assessing your situation, recommending products, completing and submitting the application, liaising with the lender, and keeping things moving, as our guide to the mortgage application process explains. So a broker can save you considerable time and effort. For busy people, or those who find the process daunting, this practical help is a major benefit of using a broker.
Brokers and your chances of approval
A good broker knows which lenders are likely to accept your circumstances, so they can direct your application to a suitable lender rather than risking declines, as our guide to affordability relates. Because each application can leave a mark on your credit file, applying to the right lender first matters. So a broker can improve your chances of approval, which is especially valuable if your case is not straightforward.
Questions to ask a broker
It helps to ask a broker how much of the market they cover, how they are paid, whether they are independent, and whether they have experience with cases like yours. Clear answers help you judge whether they suit your needs. So going in with a few questions lets you choose a broker confidently, ensuring they can offer the range, transparency and expertise that will serve your particular situation best.
Online and in-person brokers
Brokers work in different ways: some operate online or by phone, others in person, and some combine both. Online brokers can be convenient and quick, while in-person advice suits those who prefer face-to-face help, particularly for complex cases. So you can choose a broker whose way of working suits you. What matters most is that they are qualified, regulated, and able to cover enough of the market for your needs.
Is a broker right for you?
A broker is worth considering for most borrowers, and especially valuable for complex cases, those short on time, or anyone wanting expert help to find the best deal and navigate the process, as our guide to the application process explains. If your case is very simple and you are confident, going direct is an option, but for many the expertise, market access and support a good broker provides make using one well worthwhile.
Making the most of a broker
To get the most from a broker, be open about your circumstances and goals, provide your documents promptly, and ask questions so you understand the recommendation, as our guide to getting the best rate relates. The more a broker understands your situation, the better they can help. So treating the relationship as a partnership, with good communication on both sides, helps you secure the most suitable mortgage for your needs.
For most people a good, regulated, whole-of-market broker who is transparent about fees earns their keep, by widening the deals on offer, smoothing the application and improving the odds of approval, so it is well worth at least having a conversation with one before deciding to go it alone.
In short
A mortgage broker is a qualified adviser who searches the market, advises you, and helps manage your application. Whole-of-market brokers cover more lenders than restricted ones. Benefits include access to many deals, expert advice and time saved. Brokers may be fee-free (paid by commission) or charge a fee, so check how they are paid. A broker is especially valuable for complex cases, and you should choose a regulated, transparent one.
Where to get help and next steps
Read our guides to getting the best mortgage rate, how the application works, and mortgage jargon explained. This is general information, not mortgage or financial advice.