Mortgage Broker vs Going Direct — Which is Better?

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.