Mortgages & Property

Mortgage Broker vs Going Direct — Which is Better?

Compare using a mortgage broker vs applying directly to lenders. Costs, benefits, and when each approach makes sense for your home purchase.

By PocketWise · · 6 min read

Mortgage information is general guidance only. Mortgages are regulated by the FCA. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE. Consult an FCA-regulated mortgage adviser before making decisions.

Getting a mortgage is one of the biggest financial decisions you’ll make. Here’s whether to use a broker or apply directly.

Quick Comparison

Factor Mortgage Broker Going Direct
Market coverage Multiple lenders One lender only
Exclusive deals Often available Standard advertised rates
Advice Personalised guidance Self-research
Paperwork Broker handles You handle
Cost Free or fee None
Time investment Lower (broker does work) Higher (research yourself)
Complex situations Best option May struggle

What Mortgage Brokers Do

Their Services

Service What It Means
Market research Compare 50-100+ lenders
Affordability assessment Calculate what you can borrow
Product selection Match you to best deals
Application support Complete forms with you
Lender liaison Handle queries and issues
Offer tracking Chase progress
Problem-solving Navigate issues

Types of Brokers

Broker Type Coverage Notes
Whole of market All lenders Best access
Multi-tie Selected panel Still good coverage
Tied One lender only Limited options

Always use whole-of-market for the widest choice.

How Brokers Are Paid

Commission Model (Free to You)

How It Works Details
Fee from lender 0.3-0.5% of mortgage
Paid on completion Built into lender costs
Your cost Nothing direct

Fee-Charging Broker

Cost Typical Range
Advice fee £300-£500
Completion fee Additional £200-£300
Complex cases Up to £1,000

Some brokers charge fees AND receive commission — check before proceeding.

Does Commission Create Bias?

Concern Reality
Recommend higher-commission products? Good brokers recommend best fit
FCA regulation Must act in your best interest
How to check Ask why they recommend each deal

Ask: “Is this the best deal available, or do you earn more commission on it?”

What Going Direct Means

The Process

Step Your Responsibility
Research lenders Compare rates yourself
Check eligibility Use calculators and criteria
Apply Complete forms alone
Provide documents Upload/send as requested
Handle queries Deal with lender directly
Track progress Chase updates yourself

Where to Apply Direct

Lender Type Examples
High street banks Barclays, HSBC, Lloyds, NatWest
Building societies Nationwide, Yorkshire, Coventry
Online lenders Halifax, Virgin Money, Atom

When to Use a Broker

Situations That Benefit from Brokers

Situation Why Broker Helps
First-time buyer Guidance through unknown process
Self-employed Know which lenders are flexible
Complex income Bonus, commission, multiple jobs
Credit issues Access specialist lenders
Limited deposit Find more flexible criteria
Tight timeframe Broker expedites process
Buy-to-let Different criteria, specialist lenders
Remortgaging Compare whole market quickly

Exclusive Deals

Many brokers access rates not advertised publicly:

Deal Type Availability
Broker-exclusive products Only via intermediaries
Rate negotiations Brokers can sometimes negotiate
Early access New deals before public launch

When to Go Direct

Situations Where Direct Works

Situation Why Direct May Suit
Very simple case Employed, good credit, large deposit
Existing customer Bank may offer loyalty rate
Know exactly what you want 5-year fix with X lender
Prefer direct relationship Want to deal with lender
Specific lender Only one suits your needs

Direct-Only Deals

Some lenders reserve best rates for direct applicants:

Lender Type Direct Advantage
First Direct Excellent rates, direct only
Some building societies Member benefits
Your existing bank Loyalty pricing

Cost Comparison

Using a Fee-Free Broker

Cost Amount
Broker fee £0
Application £0
Result Access to market + free advice

Using a Fee-Charging Broker

Cost Amount
Broker fee £300-£500
Better deal found May save £1,000s
Net result Often saves money overall

Going Direct

Cost Amount
Broker fee £0
Your time Several hours research
Risk May miss better deals

Finding a Good Broker

What to Look For

Quality Why It Matters
Whole of market Access to all lenders
FCA regulated Legal protection
Good reviews Others’ experiences
Clear fees Know costs upfront
Responsive Communication matters

Questions to Ask

Question Good Answer
“How many lenders do you cover?” 50+ or “whole of market”
“How are you paid?” Clear explanation
“Do you charge fees?” Straight answer
“What’s your experience with [your situation]?” Specific examples
“Can you show me the comparison?” Willing to share research

Where to Find Brokers

Source Notes
L&C (free) Large, fee-free broker
Habito (free) Digital-first broker
Trussle (free) Online comparison
Local recommendations Personal referrals
Financial adviser If have existing relationship

The Application Process

With a Broker

Step Who Does It
1. Initial consultation Broker assesses needs
2. Gather documents You provide, broker reviews
3. Market search Broker researches
4. Recommendation Broker advises best option
5. Application Broker submits
6. Queries Broker handles
7. Offer Broker checks and explains

Going Direct

Step Your Task
1. Research Compare rates online
2. Check eligibility Use lender calculators
3. Gather documents Compile yourself
4. Apply Complete forms
5. Submit Upload documents
6. Queries Answer lender directly
7. Offer Review yourself

Real-World Examples

Example 1: First-Time Buyer

Factor Best Approach
Situation No experience, questions
Income Simple employed
Decision Broker — guidance valuable
Outcome Don’t miss first-time buyer deals

Example 2: Self-Employed

Factor Best Approach
Situation 2 years accounts, variable profit
Income Complex to assess
Decision Broker — know which lenders work
Outcome Find lender with good criteria

Example 3: Simple Remortgage

Factor Best Approach
Situation Existing homeowner, good equity
Income Straightforward employed
Decision Either — simple case
Outcome Check both direct deals and broker market

Example 4: Existing Bank Relationship

Factor Best Approach
Situation Long-term First Direct customer
Offer Exclusive direct rate
Decision Direct application
Outcome Take loyalty rate (compare first)

Hybrid Approach

Best of Both Worlds

Step Action
1 Check your bank’s direct rates
2 Consult a fee-free broker
3 Compare broker recommendation vs direct
4 Choose the better deal

This costs nothing and ensures you don’t miss either exclusive deals or broker-only products.

Common Myths

“Brokers Always Cost Extra”

Reality Details
Fee-free brokers exist Many excellent ones
Rates same or better Often access exclusive deals
Cost built in Lender pays, not higher rate

“Going Direct Gets the Best Rate”

Reality Details
Sometimes true Some direct-only deals exist
Often false Broker-only deals common
Check both Best approach

“All Brokers Are the Same”

Reality Details
Service varies Massively different experiences
Market access varies Whole vs limited market
Expertise varies Some specialise

Summary Recommendation

Your Situation Recommendation
Complex income/circumstances Use a broker
First-time buyer Use a broker
Self-employed Use a broker
Credit issues Use a broker
Simple case, specific lender Compare broker and direct
Existing customer deal Check direct, compare to broker
Want least hassle Use a broker
Enjoy research Compare both approaches

For most people, a fee-free whole-of-market broker is the best choice — you get professional advice, access to the whole market, and someone to handle the work.

Your home may be repossessed if you do not keep up repayments on your mortgage. PocketWise provides information and guidance — we do not offer financial advice. Seek independent mortgage advice before making decisions about borrowing.

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Sources

  1. FCA — Mortgage brokers