The average fee charged by brokers now stands at £643, with most homebuyers paying between £500-£700 to arrange their loan.
5th Mar 20260 303 1 minute read David Callaghan
Mortgage broker fees have jumped more than 28% in the last year, a new survey reveals.
Most homebuyers (56%) paid between £500 and £700 to a broker to arrange their mortgage, with the average at £643.
A fee of £500.00 remains the most common charge paid by buyers, according to the research by Boon Brokers.
Fixed feesAnd the most popular choice of broker arrangement was a fixed fee (44%), followed by a percentage of the loan (29%) or the property value (19%).
Almost all (85% of buyers were charged after their full mortgage application was submitted
Lower fees were more common in Northern England, Wales and Northern Ireland.
Most potential purchasers were unaware some brokers were free, or believed that fee-charging brokers had greater access to lenders.
Brokers are increasingly charging fees later in the mortgage process, with the majority collecting fees after the full mortgage application stage.
Approvals downMeanwhile, mortgage approvals for house purchases decreased to 60,000 in January, according to the latest Bank of England statistics released this week, below an average of around 64,100 over the previous six months.
And net borrowing of mortgage debt by individuals decreased to £4.1 billion in January, from £4.5 billion in December, below the previous six-month average of £4.5 billion.
And the ‘effective’ interest rate – the actual interest paid – on newly drawn mortgages decreased, to 4.09% in January from 4.15% in December.
Read the full Boon Brokers research here
More on mortgages
Tagsmortgage fees 5th Mar 20260 303 1 minute read David Callaghan Share Facebook X LinkedIn Share via Email