| Whole of market | Can recommend from across the market, though not direct-only deals |
|---|---|
| Tied or restricted | Recommends from one lender or a set panel |
| Lender commission | Usually paid to the broker and disclosed to you |
| OMB broker fee | May be charged, up to 1% of the loan; typically £500 |
| Check a firm | FCA Financial Services Register |
What does a mortgage broker do?
A mortgage broker assesses your circumstances, recommends a suitable mortgage and manages the application through to completion. For regulated mortgages, the recommendation must be suitable for you and explained in writing.
In practice, that means checking lender criteria, packaging your documents, dealing with underwriters and valuers, and keeping your solicitor and estate agent informed. A broker is not a lender. The lender makes the final decision.
Good brokers also look ahead. They review your mortgage before a fixed rate ends, flag protection needs such as life insurance, and explain the costs of switching against staying put. You decide whether to act on their advice.
What is the difference between whole-of-market and tied brokers?
A whole-of-market broker can recommend products from across the market. A tied or restricted adviser recommends from one lender or a limited panel. Both must tell you which they are before giving advice.
Even whole-of-market brokers cannot access every deal. Some lenders sell certain products only direct to customers. A good broker will say so. MoneyHelper notes that some specialist products may also sit outside a broker's panel.
OMB is an independent, whole-of-market broker covering residential, buy-to-let, specialist, high-value, commercial, bridging and development lending.
How are mortgage brokers paid?
Brokers are paid by commission from the lender, a fee from you, or both. Commission, often called a procuration fee, is paid by the lender on completion. It does not usually change your interest rate. It must be disclosed to you.
Fees vary. Some brokers are fee-free. Others charge a flat fee or a percentage of the loan. OMB may charge a broker fee of up to 1% of the loan, typically £500, and may also receive commission from lenders. Ask when any fee is payable and whether it is refundable if the mortgage does not complete.
Under the FCA's Consumer Duty, firms must offer fair value and explain costs clearly. Commission from lenders does not usually change your interest rate, but it should never influence the recommendation. If you are unsure how a broker is paid, ask them to put it in writing.
When might you not need a broker?
Going direct can work well if your situation is simple. Examples include:
- A product transfer with your current lender, with no extra borrowing
- A salaried applicant with a clean credit file and a standard property
- A deal you have found that is only available direct
Bank advisers can only recommend their own products. You will need to compare the market yourself, and you will deal with any problems directly. Comparison websites can help you see headline deals, but they do not check whether you meet each lender's criteria.
When does a mortgage broker add most value?
A broker earns their fee where lender criteria vary widely. The same application can be declined by one lender and approved by another. Brokers know which lenders suit which cases.
- Self-employed or company director income
- Foreign nationals, expats and foreign-currency income
- Bonuses, RSUs or complex pay at senior level
- High-value and private bank lending
- Buy-to-let portfolios and limited company purchases
- Adverse credit, bridging and development finance
A broker can also reduce unnecessary hard credit searches by approaching the right lender first. When a case is complex, a broker can also speak to lender underwriters before you apply, to test whether a case is likely to be accepted.
What protections do you get from using a broker?
For regulated mortgages, brokers must be authorised by the FCA, follow its rules on advice and treat you fairly under the Consumer Duty. You can complain to the Financial Ombudsman Service if a complaint is not resolved.
Many buy-to-let, commercial and bridging loans are not FCA-regulated, so these protections may not apply in full. Ask your broker which products are regulated.
How do you choose a mortgage broker?
- Check the firm on the FCA Financial Services Register
- Ask whether they are whole of market or restricted
- Ask for fees in writing, including when they are charged
- Look for experience with cases like yours
- Check who you will deal with day to day
A free initial conversation is a sensible way to test whether a broker understands your situation. OMB offers a 15-minute call to talk through your plans with no obligation.
Sources
Checked October 2026. Rules and tax treatment can change, so confirm the current position before acting.
Frequently asked questions
Is it cheaper to go direct to a bank?
Sometimes. You avoid any broker fee, and a few deals are direct-only. But brokers can access most of the market, including some broker-only products. For many borrowers the rate is similar either way. The bigger difference is whether the lender's criteria fit your case.
Do mortgage brokers get better rates?
Not always. Most lenders offer the same rates through brokers and direct. Some products are only available through brokers, and some only direct. A broker's main value is matching you to a lender likely to accept your application on suitable terms.
How much does a mortgage broker cost?
It varies. Some brokers charge no fee and rely on lender commission. Others charge a flat fee or a percentage. OMB may charge a fee of up to 1% of the loan, typically £500, and may receive lender commission. Fees must be disclosed before you commit.
Can a broker guarantee I'll be approved?
No. Only the lender can approve a mortgage, after underwriting and valuation. A broker can reduce the risk of decline by choosing a lender whose criteria fit your circumstances and presenting your case properly. Be wary of anyone who promises approval before seeing your documents.
When do I pay a mortgage broker fee?
It depends on the broker. Some charge on application, some on offer and some on completion. Ask whether the fee is refundable if the purchase falls through. Fee terms must be set out in writing before you are charged. OMB confirms any fee in writing at the start.
Can I use a broker and still go to my own bank?
Yes. A whole-of-market broker can recommend your own bank if it is the most suitable option, and can compare its deal with others. If your bank offers a direct-only product, the broker should tell you. Some brokers can also arrange product transfers with your existing lender.
What does whole of market mean?
It means the broker can recommend mortgages from across the market rather than from one lender or a fixed panel. It does not cover deals that lenders only sell direct to customers. A whole-of-market broker should still tell you if a direct-only deal might suit you better. Restricted advisers must say which lenders they can use.
How do I check a mortgage broker is regulated?
Search the firm's name or reference number on the FCA Financial Services Register. It shows whether the firm is authorised and what it can do. OMB's FCA firm reference number is 944663. You can also check the individual adviser. For unregulated products such as most commercial loans, the firm may still be authorised for its regulated work.
Important: This guide is general information, not personal advice. Rules, rates and lender criteria change; speak to an adviser about your circumstances. Your home may be repossessed if you do not keep up repayments on your mortgage.