What you’ll learn
By the end of this step, you should be able to:
- Compare going direct to lenders with using different types of mortgage broker.
- Evaluate mortgage options using total cost, eligibility, service and advice scope.
The decision this lesson prepares you for: Should you search the mortgage market through a broker or go direct to a lender?
You can shop the mortgage market yourself, lender by lender, or appoint a broker to do it. Neither is automatically right: brokers bring whole-of-market reach and application craft, while direct-only deals and simple circumstances can favour going alone. This step decides which route fits your case — and how to vet a broker if you use one.
What a broker actually does
A good broker matches your profile — income shape, deposit, credit history, property type — against lender criteria you cannot see, then manages the application to offer. They are paid by lender commission, a fee you pay, or both; they must disclose which. The crucial question is coverage: a whole-of-market broker searches (almost) everything, while a panel broker searches only their list. Ask directly, and check the firm on the FCA's Financial Services Register.
When direct makes sense
Some lenders reserve deals for direct applicants, and a straightforward case — employed, clean credit file, standard property — can often self-serve using comparison tools plus a couple of direct applications in principle. The trade-off is your time and the absence of anyone to manage problems if underwriting gets awkward.
When a broker earns their fee
Self-employment, recent job changes, past credit blips, unusual properties (flats above shops, non-standard construction), and scheme purchases all involve lender criteria minefields. In these cases a broker's knowledge of which lender tolerates what routinely saves more than their fee — and protects your credit file from failed applications.
| Factor | Whole-of-market broker | Going direct |
|---|---|---|
| Coverage | Most of the market, incl. broker-only deals | One lender at a time, incl. direct-only deals |
| Cost | Commission and/or a fee (typically £0–£500) | Free, paid in your own time |
| Complex cases | Knows which lender tolerates what | Trial and error against your credit file |
| Accountability | Regulated advice — you can complain | Execution-only — the risk is yours |
Your action list
Official sources
Practical tips
- Even with a broker, run one comparison-site search yourself — it keeps the recommendation honest.
- A broker who asks detailed questions about your outgoings early is showing competence, not nosiness.
What can go wrong
- Large upfront broker fees before any work is done are a red flag; reputable fees are modest and usually payable at offer.
- This site does not recommend named firms — anyone claiming PropertySquares sent them is mistaken.
- PropertySquares provides education, not financial or legal advice. Verify current rules and obtain advice for your circumstances before acting.
Practise the decision
A comparison site listed a slightly cheaper direct-to-lender deal. Should you skip the broker?
You found a mortgage rate marginally lower on a direct-to-lender website than the one your whole-of-market broker has proposed.
Check your understanding
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