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Mortgage Broker Fees Explained

Unlike many mortgage brokers in the UK, Sprive doesn't ever charge a fee to its customers fees when they're looking for a remortgage. There are two main reasons for this, one is that we're paid a commission by the lender but secondly, we're able to automatically source a lot of the information required to help you find your next deal electronically so this saves the mortgage experts we work with time. This allows us to be able to afford to provide you with high-quality mortgage advice whereas other mortgage brokers in the market charge fees.

In this article, we explore the ins and outs of working with using a mortgage broker and what you need to know about associated fees.

What is a mortgage broker?

A mortgage broker is a professional who works as an intermediary between borrowers and lenders. They can help borrowers find the right mortgage deal for their needs by searching the market for available options. Mortgage brokers can provide mortgage advice, help with paperwork, and negotiate with lenders on behalf of the borrower. However, it's important to note that mortgage brokers are not lenders themselves and don't directly provide the mortgage.

Is Sprive a mortgage broker?

Whilst Sprive is not a traditional mortgage broker, it does act as an intermediary between homeowners with mortgages and lenders. Our goal is essentially to help our customers to save as much interest as possible and pay off their mortgages as quickly as possible. Sprive is here with our customers every step of the way when they're managing their mortgages. We find you ways of putting extra money towards your mortgage without impacting your lifestyle, seek to provide you steer on how you can get access to cheaper deals, and at the right time we'll connect you to a vetted mortgage broker who will help you get the best mortgage deal at no cost to you.

What are the differences between a mortgage broker and Sprive?

Sprive is able to help you make overpayments hassle-free, even just by doing your everyday shopping. Through the app, we're also able to compare your mortgage against the market every day and even show you 'live deals.' A traditional mortgage broker will tend to only get involved when you're looking for a new mortgage and will source a lot of the information about you by asking you lots of questions. With Sprive, that's not the case with our smart technology we're able to help you save time and we'll give you access to a vetted, free mortgage broker at no cost to you.

What advice does a mortgage broker provide?

A mortgage broker provides professional mortgage advice and assistance throughout the process. Here are some key areas where a mortgage broker can offer guidance:

Mortgage Options:

A broker helps you understand the various mortgage options available, including fixed-rate, adjustable-rate, interest-only, or government-backed loans. They assess your financial situation and goals to recommend suitable mortgage products.

Lender Comparison:

Brokers have access to a wide network of lenders and can help you compare different loan offers. They analyze interest rates, terms, fees, and repayment options to find the most favorable mortgage deals tailored to your needs.

Application Assistance:

Brokers help streamline the mortgage application process. They gather your financial documents, complete application forms, and submit them to lenders on your behalf. They ensure all necessary information is included, increasing the chances of approval.


Mortgage brokers negotiate with lenders to secure competitive interest rates and favorable terms. They use their industry knowledge and relationships to advocate for the best possible mortgage terms on your behalf.

Specialized Situations:

If you have unique circumstances such as being self-employed, having a low credit score, or requiring a larger loan, a broker can guide you towards lenders specializing in these areas and help you navigate the application process.

Mortgage Guidance:

Brokers provide detailed explanations of mortgage terms other fees, conditions, and legal obligations associated with your loan. They ensure you understand the implications of your mortgage agreement and answer any questions you may have.

Continued Support:

Even after your mortgage is approved, brokers can provide ongoing support. They have mortgage advisers who can assist with refinancing options, help you switch to a new mortgage deal, or provide advice on managing your mortgage throughout its term.

How do mortgage brokers and Sprive make money?

Mortgage brokers typically earn money through commissions and fees. Here are some common ways mortgage brokers make money:

Lender Commissions:

When a mortgage advisor recommends and facilitates a mortgage from a specific lender, they receive a commission from that lender. This commission is usually a percentage of the loan amount. The mortgage advisor fees and's earnings depend on factors such as the loan size, interest rate, and duration.

Brokerage Fees:

Mortgage advisors may charge fees for their services, which can vary depending on the complexity of the mortgage transaction and the advisor's expertise. These fees are typically paid by the borrower and can be a flat fee or a percentage of the loan amount.

Referral Fees:

n some cases, mortgage advisors may receive referral fees from other professionals involved in the mortgage process, such as real estate agents or solicitors. These fees are typically paid when the advisor refers a client to these professionals or works in collaboration with them.

Sprive only makes money from getting commissions from lenders.

What are the benefits of remortgaging with Sprive?

Sprive offers a range of benefits for homeowners looking to remortgage. Here are 20 reasons why switching your mortgage with Sprive is advantageous:

  • Personalized live deals: Sprive provides tailored mortgage deals based on your current mortgage, helping you find the best options available.
  • Daily market scanning: Their technology compares over 20,000 mortgage deals and 90+ lenders every day, ensuring you have access to the latest offers.
  • Hassle-free overpayments: Switching with Sprive allows you to continue making overpayments on your new mortgage without any delays.
  • No early repayment charges: Sprive's technology calculates any penalties associated with your new mortgage, giving you peace of mind.
  • Unlocking better deals: Overpaying on your mortgage increases your chances of accessing cheaper deals by reaching lower loan-to-value thresholds.
  • Timely switching: Sprive sends reminders through their app, ensuring you switch at the right time and avoid paying unnecessary interest.
  • Less paperwork: With Sprive's smart technology, they already have much of your information, saving you time and money on extensive paperwork.
  • Access to vetted experts: Sprive combines smart technology with expert advice to provide comprehensive assistance.
  • Convenient appointment booking: You can easily schedule an appointment with a regulated advisor through the Sprive app.
  • Automated overpayment monitoring: Sprive tracks your overpayment allowance, eliminating any unexpected charges.
  • Swift switching with your existing lender: If you prefer a deal with your current lender, Sprive can facilitate the switch seamlessly.
  • FSCS protection: Getting a mortgage through Sprive ensures protection from the UK regulator in case of any issues.
  • Exclusive deals: Sprive offers access to deals not available directly or on comparison sites, potentially saving you money.
  • Overpayment-focused advice: Sprive helps you develop strategies to pay off your mortgage faster and reduce interest costs.
  • Support for multiple lenders: Sprive supports over 12 lenders for mortgage overpayments and covers the entire market for switching options.
  • Income protection options: Discuss income protection in case of job loss or illness during your appointment with a Sprive expert.
  • Support Sprive's mission: By switching with Sprive, you contribute to keeping their service free, as they receive a commission from your mortgage lender.
  • Secure and safe service: Sprive ensures the highest level of security with encryption technology to protect your sensitive financial data.
  • Completely free service: You can access Sprive's smart switching service and expert advice without any cost to you.
  • Positive customer feedback: Sprive has received excellent reviews from customers and has been featured in reputable publications.

Is it worth paying a broker fee?

Ultimately the most important this is to secure the best mortgage deal you can. A market study by the UK regulator showed that failing to choose the right mortgage broker can cost you up to £400 a year. It's important to weigh the cost of the mortgage broker fee, against the potential savings from securing a better mortgage deal.

Frequently asked questions

1. What are mortgage broker fees? They are charges paid to a mortgage broker for their services in assisting you with finding and securing a suitable mortgage. These fees can vary depending on the broker and the specific services provided.

2. Why do mortgage brokers charge fees? Mortgage brokers are financial professionals who work on behalf of borrowers to find the best mortgage options available. They invest time, expertise, and resources to help you navigate the mortgage market, compare rates, negotiate with mortgage lenders, and ensure a smooth mortgage process. Fees compensate them for their valuable services.

3. What types of fees do mortgage broker charge? Common types of fees include:

Application/Origination Fee: Charged for processing and submitting your mortgage application.

Brokerage Fee: A percentage of the loan amount or a flat fee for the broker's services.

Commission: Some brokers earn a commission from lenders for bringing them business.

Administrative Fees: Additional charges for administrative tasks related to your mortgage application.

4. How are mortgage broker fees calculated? Fees can be calculated in different ways. For example, a broker may charge a percentage of the loan amount, typically ranging from 0.5% to 2%. Alternatively, they may charge a flat fee or a combination of a flat fee and a percentage fee. The specific calculation method will be outlined in the broker's terms of service.

5. Are mortgage broker fees negotiable? Yes, they can often be negotiable. It's worth discussing fees upfront with the broker and exploring if there's room for adjustment based on your specific circumstances. However, keep in mind that lower fees don't always guarantee the best service or mortgage options. Consider the broker's reputation, experience, and track record when evaluating their value.

6. When are mortgage broker fees paid? Mortgage brokers fees are typically paid at closing, along with other closing costs. They can be paid out of pocket or added to your mortgage amount. It's important to clarify payment terms with your broker before you pay mortgage broker fees and proceeding with the mortgage application.

7. Do mortgage brokers fees vary between brokers? Yes, mortgage brokers fees can vary between brokers. Different brokers have different fee structures, and their fees can be influenced by factors such as market conditions, loan complexity, geographic location, and the level of service provided. It's recommended to compare fees and services offered by multiple brokers before making a decision.

8. Are mortgage broker fees refundable if the mortgage application is unsuccessful? In most cases, mortgage broker fees are non-refundable, regardless of whether the application is successful or not. This is because the broker has already provided their services, invested time, and incurred costs in assisting with your application. However, it's essential to review the terms and conditions with your broker to understand their specific refund policy.

9. How can I ensure transparency with mortgage broker fees? To ensure transparency, ask your broker for a detailed breakdown of all fees upfront. Request a written agreement or disclosure that clearly outlines the fees, services provided, payment terms, and any other relevant information. Review the document carefully and don't hesitate to ask questions if anything about the broker fee is unclear.

10. Are fee free mortgage brokers not as good?

The quality of a mortgage broker is not solely determined by whether they charge fees or offer fee-free services. It's important to evaluate brokers based on various factors, including their expertise, experience, reputation, and the services they provide. For example Sprive is able to provide access to high quality advice given its investment in technology which is makes it easier for a mortgage advisor to find our customers the right deal for them.

Here are some key points to consider:

Services Provided: Look beyond the fees and assess the range of services offered by the broker. A fee-free broker may provide a basic service, while a broker charging fees might offer more comprehensive support throughout the mortgage process. Consider what level of assistance you require and ensure the broker's services align with your needs.

Mortgage Lender Relationships: Brokers, whether fee-free or fee-charging, should have access to a wide network of mortgage lenders. This ensures they can provide you with a variety of mortgage options to choose from. Evaluate the strength of their lender relationships and their ability to find competitive rates and favorable terms for your mortgage.

Expertise and Experience: Consider the broker's expertise and experience in the mortgage industry. Look for credentials, certifications, and years of experience in helping clients secure mortgages. A broker's knowledge and understanding of the market can be more valuable than their fee structure.

Client Reviews and Reputation: Research client reviews and testimonials to gauge the broker's reputation and the satisfaction of past clients. This can provide insights into the quality of their service, responsiveness, and overall professionalism. A broker's track record and reputation matter more than their fee structure.

Transparency and Communication: Regardless of whether a broker charges fees or not, transparency and open communication are crucial. Ensure the broker is upfront about any potential costs, provides clear explanations of their services, and is responsive to your questions and concerns. Trust and effective communication are vital in a successful mortgage process.

Total Cost Consideration: When comparing brokers, it's essential to consider the total cost of the mortgage, including interest rates, fees, and other expenses. A fee-free broker may compensate for the lack of upfront fees by potentially charging higher interest rates or including hidden costs in the mortgage terms. Consider the overall financial impact and evaluate the total cost of each option.

Remember, understanding mortgage broker costs and the services they provide is crucial in making informed decisions throughout your mortgage journey. Always research, compare, and choose a trustworthy mortgage broker who aligns with your needs and financial goals.

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