How much does a mortgage advisor cost?

What are the different types of mortgage advisors?

There are two main types of mortgage brokers: Tied or multi-tied brokers who only work with a single mortgage lender or a small number of lenders. And whole-of-market brokers or ‘independent’ brokers, who will compare mortgage products from a much wider choice of lenders. 

Tied or multi-tied brokers can’t recommend mortgages offered by other lenders, even if there are more suitable options elsewhere. Tied or multi-tied brokers are often fee-free, as they’ll be paid by the lender. Whole-of-market brokers still earn commissions from the lenders they recommend, but they aren’t obligated to recommend a specific lender or group of lenders. Using a tied or multi-tied broker could result in you paying more over the course of your mortgage term than you would if you chose an independent broker because you could be missing out on a cheaper deal elsewhere. Some whole-of-market brokers will have access to hundreds or even thousands of mortgage products. 

This could give you a better chance of finding the right mortgage for your situation, especially if you go with a whole-of-market broker who also specialises in certain issues, like boosting mortgage affordability (like us).

Do mortgage advisors charge fees?

Yes, some mortgage advisors charge fees for their services, while others are free. A free mortgage advisor is usually called a “fee-free” mortgage broker, meaning they won’t charge a fee for their services. Instead, they’ll just earn a commission from the lender once a mortgage offer is complete. While this can help you reduce the upfront costs involved when getting a mortgage, this could mean you aren’t given as specialist or personalised service as you would with a fee-paying mortgage broker. 

Fee-free mortgage advisors need more customers through the doors to make money, as they are only getting a commission from the lender. So you could feel like another number in a system trying to get pushed through as quickly as possible. With a specialist mortgage broker, you’re paying for their expertise and time, so although you have to pay a fee, if your situation is particularly complex or you’re looking for more personal service, they could be the better option. After all, buying a house is one of the biggest purchases you’ll likely make in your life, you want to feel you’re getting the best deal and that your advisor has explored every possible option available to you.

What is the average cost of a mortgage advisor?

The cost of a mortgage advisor can vary from anywhere between £0 to £500, but it can be more than this if your case is complex. The amount you’ll pay will depend on your circumstances and your chosen mortgage broker’s payment structure. Some charge an hourly rate, which can be cost-effective if your situation is fairly straightforward or you’re looking for one-off advice, but the costs can escalate if there are any complications during the application process. Fixed-fee mortgage brokers tend to charge somewhere between £200 to £800 (some may charge more than this), so you know how much you’re paying. You may pay this fee upfront or on successful completion of a mortgage. Percentage mortgage brokers will charge a percentage of the mortgage that you’re taking out. This can work out more expensive than other options, particularly if you’re taking out a large loan. 

At Tembo, we typically charge £499 for a standard mortgage, and up to £749 for a more complex mortgage such as guarantor mortgages like an Income Boost or Deposit Boost, as these cases often require more time. The fee isn't payable until you have a mortgage offer from a lender, so you'll never pay for advice alone. Plus through our service, you'll get access to over 100 lenders, including many options not found on the high street or through other channels which are exclusively available to Tembo. And, your dedicated mortgage team will do all the hard work for you! We'll help you find the right mortgage and conveyancer, and we'll liaise with your solicitor and estate agent once your offer has been accepted.

In some cases, a different fee structure may be more appropriate. Our advisers explain these fees at the outset so our customers can make an informed choice before beginning an application. The maximum fee we charge will never be more than 1% of your mortgage loan.

How much is a meeting with a mortgage advisor?

Most mortgage advisors offer an initial meeting or consultation for free. If you’re using a local advisor, you may have the option to visit them in their office (but remember, unlike an estate agent, mortgage products aren’t local, so you won’t necessarily get different deals from going with an advisor near you). If you’re using an online advisor, a phone call or video call can be much more convenient.

During this initial consultation, the broker will usually ask a few questions to get to know you better. If you’re buying a house, they might ask about your budget and the type of property you’re looking for. If you’re hoping to remortgage, it can be helpful to talk about your reasons for wanting to switch to a new mortgage deal. 

Make a note of any questions you’d like to ask before your meeting. It can take a few weeks or even months to get a mortgage, so it’s best to find an advisor you’re comfortable with and can trust. 

What if my situation is complex?

If your situation is particularly complex, a specialist mortgage broker could be the difference between multiple mortgage rejections vs getting approved the first time. Specialist brokers tend to charge higher fees than generalists, but they can be worth the extra costs. Some specialists focus on helping people get a mortgage with a bad credit score for example, or helping self-employed borrowers meet lenders’ affordability criteria. Others are specialists in helping buyers boost their affordability whatever their situation.

At Tembo, we specialise in helping buyers, homeowners and remortgagers find alternative ways to get a mortgage and buy their own home or remortgage. We’ve helped thousands of people turn their home ownership dreams into a reality. Get started with Tembo today. 

Learn more: What to do if your mortgage application is declined?

Is it worth getting a mortgage adviser?

Yes, it’s definitely worth getting a mortgage adviser, whether you’re a first-time buyer, a home mover or Buy to Let investor. A mortgage adviser can help you get a mortgage you wouldn’t have been able to access otherwise, as some banks offer exclusive broker-only deals that you won’t find anywhere else. Here at Tembo, we’ll compare your eligibility to more than 20,000 mortgage products from across the market! A good mortgage broker will also take all the admin off your hands, helping you prepare your mortgage application, chase the lender for updates, and even contact solicitors and surveyors on your behalf.

A mortgage broker could save you thousands of pounds throughout the course of your mortgage term by helping you secure a better deal, making even the more expensive brokers well worth the initial investment. 

Having your mortgage application rejected can be one of the most stressful things to happen when buying a house. At Tembo, 80% of our customers were previously rejected by a broker or lender before coming to us. Thanks to our award-winning smart decisioning technology, when you create a free Tembo mortgage recommendation we compare your eligibility to thousands of mortgages in minutes. So you can see what your true affordability is, and all the options you are eligible for. Then, you can talk through your options with our award-winning team of mortgage experts, and submit your mortgage application when you’re ready.

Learn more: Why use a mortgage broker?