What is Mortgage Broker?

Full Definition

A mortgage broker is a regulated adviser, authorised by the Financial Conduct Authority (FCA), who assesses a borrower's circumstances and searches across mortgage lenders to find and recommend suitable deals, then helps manage the application through to completion. Brokers can be "whole of market", searching most or all UK lenders, or tied/limited to a smaller panel of lenders, so it is worth checking which type of broker is being used before assuming every available deal has been considered. Brokers are typically paid either by a proc fee (commission) from the lender, a fee charged directly to the borrower, or a combination of both, and by law must disclose how they are paid and confirm whether their advice is independent; a good broker will make clear whether a recommended deal was chosen because it was genuinely the best fit or because of how they are remunerated. Using a broker can be particularly valuable for less standard cases -- self-employed borrowers, those with a complex income, a small deposit, or an adverse credit history -- since brokers often have access to specialist lenders and product ranges not available directly to the public, and their FCA regulation means borrowers have access to the Financial Ombudsman Service if the advice given turns out to have been unsuitable.

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