What Does a Mortgage Broker Do? A Plain English Guide

The role in plain English

A mortgage broker is an intermediary who finds and arranges a mortgage on your behalf. They are not a lender themselves. Their job is to understand your circumstances, search the market for suitable products, recommend the best fit, and handle the paperwork to get the mortgage approved.

The relationship is regulated by the Financial Conduct Authority (FCA). Mortgage advice is a regulated activity and brokers must hold the CeMAP qualification (or equivalent) to practice.

The typical process

1. Initial conversation: the broker takes details about your income, deposit, target property, family situation, and goals. This is usually free and non-binding.

2. Affordability assessment: the broker calculates how much you can borrow based on lender criteria, not just bank statement maths.

3. Decision in Principle: the broker submits a soft application to a chosen lender to confirm eligibility. You receive an MIP within minutes to days.

4. Property identified: once you have an offer accepted, the broker submits the formal mortgage application to the chosen lender with all supporting documents.

5. Lender processing: the lender's underwriter reviews the application, instructs a valuation, and issues a formal mortgage offer if approved. The broker chases up any queries.

6. Mortgage offer issued: the broker forwards the offer to you and your conveyancer.

7. Completion: the broker is involved up to drawdown, then their role usually ends.

8. Remortgage time: most brokers contact clients 6 months before the fixed rate ends to start the remortgage process.

What the broker actually does for you

1. Searches the market across many lenders, including specialist lenders not visible to consumers

2. Knows lender criteria in detail, including the unwritten rules about acceptable income types, credit history, property types, and deposit sources

3. Saves you time: one conversation instead of multiple applications across multiple banks

4. Recommends the best product (rate, term, fees, flexibility) based on your specific needs

5. Handles paperwork and chases the lender on your behalf

6. Advises on declined applications and finds alternative lenders

7. Arranges related products (life insurance, income protection, building insurance) where appropriate

What the broker does not do

1. Lending decisions: the lender's underwriter decides, not the broker

2. Property valuation: the lender appoints a valuer

3. Conveyancing: the broker is separate from your conveyancer

4. Tax advice: a broker is not a tax adviser

5. Investment advice: not their domain

Cost

Broker fees vary widely:

• No fee: the broker takes a commission from the lender (typical for high street remortgages)
• Fixed fee: £200 to £700 paid by the client
• Percentage of loan: 0.3% to 1% of the loan amount
• Hybrid: a small client fee plus lender commission

Always ask about the fee structure in writing before instructing.

When to use a broker vs going direct

See our broker vs direct guide for the full comparison. As a rule, if your situation is anything other than entirely standard (clean credit, PAYE income, brick built freehold), a broker is usually worth the cost.

Verify the property first

Whatever route you choose, look up the property on Property Passport UK at [/search](/search) to verify EPC, flood risk, tenure, and listed status before submitting a mortgage application. Spotting issues early saves wasted application fees.

Look up any UK property on Property Passport UK

Property Passport UK is the national property data registry for England and Wales. Verified data on every one of the 19.35 million properties from HM Land Registry, the EPC Register, Ordnance Survey, and the Environment Agency. Free, no account required. Search any address at [/search](/search).