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How much does a Mortgage Advisor Cost? 2021

Average Price
£50 - £250 per hour

How much does a Mortgage Advisor charge?

Looking to purchase a property but unsure how much the mortgage will set you back? Read our handy guide on how much it will cost to work with a mortgage advisor.

What is a Mortgage Advisor / Mortgage Broker

A mortgage advisor (sometimes referred to as a mortgage broker), is a qualified professional who specialises in getting you the best mortgage deal based on your personal circumstances. Find a Mortgage Broker near me.

 Unlike traditional lenders, mortgage advisors are not tied to a particular institution. Instead, they have access to a broad network of deals and may also be able to offer special incentives.

Unlike a lender, a mortgage advisor will be able to tell you in a much quicker time frame whether you’d qualify for a mortgage or not. They put a strategy together based on the outcome to help you move to the next stage. Mortgage advisors also liaise with the lenders on your behalf, which otherwise can be quite time-consuming. 

A mortgage advisor will work with the mortgage lenders, solicitors, estate agents, and all other parties, to get your mortgage through as quickly and efficiently as possible.

How much do Mortgage Advisors charge? 

The pricing structure for mortgage advisors is complex because they can charge an hourly, fixed, or even a combination fee. We’ve put together the average price of hiring a Mortgage Advisor when they are working on an hourly rate: 

Minimum cost (per hour)£50
Maximum cost (per hour) £250

Different types of Mortgages 

There are different types of mortgages, and so it’s important you understand which one is right for you.

Tracker mortgages - Tracker mortgages will follow the Bank of England base rate. Usually, tracker mortgages will have a low introductory rate before you are moved onto the lender’s standard variable rate.

Fixed-rate mortgages - On a fixed-rate mortgage, you will pay the same interest rate for the duration of your mortgage despite fluctuations in the interest rate. Fixed-rate mortgages are the most popular mortgage type. 

Standard variable rate mortgage - A standard variable rate mortgage is a type that you will most likely be moved onto after finishing an introductory rate, tracker mortgage, or another discounted deal. This mortgage type is subject to the most fluctuations. However, a plus with this type is that you won’t usually be charged for early repayment. 

What changes the cost of a Mortgage Advisor? 

 There are several factors which impact the price of getting a Mortgage Advisor: 

  • Pricing structure

  • Arrangement fee

  • Booking fee

  • Early repayment fee

  • Exit/closure fee

  • Mortgage account fee

  • Valuation fee

Pricing structure 

Price structureHighest average price Lowest average price
Upfront fee£600 £500
Hourly rate £250£50
Commission 0.45% of loan0.35% of loan

Mortgage Broker charges are complex because it depends on the pricing structure of the lender or individual you go to. They could also charge you a combination fee, which as the name suggests is a set fee plus a commission. 

The commission itself depends on the size of the loan you are taking out, which will vary significantly depending on the property type and your location. For example, if you bought a home for £150,000 then the mortgage advisor would earn between £525 and £675 in commission. Just like the property you wish to purchase, it is certainly worth shopping around for a mortgage advisor. That’s because each will have different pricing structures and varying levels of fees. 

Arrangement fee

A mortgage arrangement fee is also known as a product or completion fee. It is a charge that you will pay to the lender for the actual product. You have the choice of adding the fee to the mortgage itself, though this will incur more charges. The average cost of an arrangement fee is between £1,000 and £2,000.

Booking fee

A booking fee is also known as an application or reservation fee. It is a fee that is charged upfront for purchasing your loan while the application goes through. The average booking fee charge is £99, although some lenders won’t charge you at all. Be aware that if your mortgage falls through, a booking fee is usually not refundable.

Early repayment fee

Mortgage lenders make the majority of their profit through the interest rates they charge over time. If you pay the mortgage back early, they will not receive the same level of income from your mortgage. As a result, you’ll be charged an early repayment fee. 

Not all mortgage deals are subject to a repayment charge, but if they are, then you’ll need to pay between 1% and 3% on the total value of the loan. For example, if your mortgage was £100,000 then your fee would be between £1,000 and £3,000. You may also be asked to return any incentives or cashback offers if applicable.

Exit/closure fee

Once you have repaid your mortgage, then you will be subject to an exit fee. Typically, exit fees are between £75 and £300. In some cases, you don’t have to pay an exit fee, such as if your mortgage account fee covers set up and maintenance charges.

Mortgage account fee

A mortgage account fee covers all the costs associated with setting up your mortgage. If you pay a mortgage account fee, you typically don’t have to pay an exit fee. The average mortgage account fee costs between £100 and £300.

Valuation fee

Depending on the value of the property, you’ll be charged between £150 and £1,500 to have it valued by your mortgage provider. This ensures the property is worth the amount you intend to borrow. It’s also possible to arrange your own valuation depending on your preferences.

Is it worth getting a Mortgage Advisor?

Given the average mortgage takes 25 years to pay off, and is one of the biggest financial decisions you’ll ever make, it pays to seek advice before you jump in. Most people will only take out one mortgage in their lifetime. However, a mortgage advisor spends every day working in the industry. This means they are best placed to help you get a deal that works for your circumstances. By choosing a reputable mortgage advisor, they could save you a lot of money in the long run, making their services highly valuable.

A mortgage advisor acts as a middleman between you and the lenders. In many cases, they can bypass the lengthy process that securing a mortgage normally involves. A mortgage advisor may also be able to get you a better deal depending on their experience. 

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