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Mortgage Broker vs Bank — Which do you need?

Not sure which professional to hire? Here's everything you need to know about the difference between a mortgage broker and a bank.

At a glance

Mortgage Broker

Typical jobs

  • Residential mortgage application
  • Buy-to-let mortgage
  • Remortgage
  • First-time buyer advice

Typical qualifications

  • FCA authorised
  • CeMAP qualification (most common)
  • Whole-of-market access recommended

Bank

Typical jobs

  • General services in this category

Typical qualifications

  • Relevant trade qualifications
  • Public liability insurance recommended

Cost comparison

ServiceLow estimateHigh estimatePer
Mortgage Broker£0£500per application
Bank£40£200per hour

Indicative UK market rates. Always get at least 3 written quotes.

How to decide: Mortgage Broker or Bank?

  • 1A whole-of-market mortgage broker searches all lenders including those not on the high street.
  • 2Broker fees vary — some charge an upfront fee, others receive procuration fees from lenders only.
  • 3Compare quotes from at least three local providers.
  • 4Check reviews and verify credentials before booking.

Frequently asked questions

What is the difference between a Mortgage Broker and a Bank?

A Mortgage Broker typically handles: Residential mortgage application, Buy-to-let mortgage. A Bank typically handles: General services in this category.

How much does a Mortgage Broker cost compared to a Bank?

A Mortgage Broker typically charges £0–£500 per application. A Bank typically charges £40–£200 per hour.

Do I need a Mortgage Broker or a Bank?

A whole-of-market mortgage broker searches all lenders including those not on the high street. Broker fees vary — some charge an upfront fee, others receive procuration fees from lenders only. Compare quotes from at least three local providers. Check reviews and verify credentials before booking.

What qualifications does a Mortgage Broker need in the UK?

FCA authorised, CeMAP qualification (most common), Whole-of-market access recommended.

What qualifications does a Bank need in the UK?

Relevant trade qualifications, Public liability insurance recommended.