The savvy property trick top home buyers use to unlock hidden rates and skip fees

BUYING a home can feel like a full-time job – especially when you’re trying to work out which mortgage deal is actually right for you.

From comparing mortgage rates to figuring out how much you could borrow, there’s a lot to get your head around.

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And with mortgage rates continuing to move, getting the right advice can be particularly important.

The Bank of England held the base rate at 3.75% this week, but fixed mortgage rates can move independently of the base rate as lenders respond to changes in financial markets.

That’s where a mortgage broker could come in.

What does a mortgage broker actually do?

A mortgage broker is a professional who can help you find and arrange a mortgage.

Rather than approaching lenders yourself or spending hours applying to banks individually, a broker can look at your circumstances and help you understand which mortgage options could be suitable.

They’ll usually ask about things such as your income, spending, existing debts and deposit before looking at available deals for you.

This can be particularly useful at a time when mortgage rates are changing and the cheapest deal one week may not necessarily be available the next.

Mortgage offers and affordability can also vary significantly depending on your deposit and circumstances, so it’s not simply a case of finding the mortgage with the lowest advertised rate.

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5 reasons you should use one

• They do the heavy lifting: Forget trawling through dozens of comparison sites. A broker compares deals, handles the application admin, and chases the lender to keep things moving.
• Access to exclusive deals: Brokers often have access to “broker-only” rates and special offers that aren’t available directly on the high street.
• Tailored to tricky finances: If you’re self-employed, freelancing, a contractor, or have a less-than-perfect credit score, high street banks might auto-reject you. Brokers know which specialist lenders welcome complex incomes.
• They look at the REAL cost: The lowest interest rate isn’t always the cheapest deal. High booking fees, valuation costs, and exit penalties can add up fast. A broker calculates the total cost over the entire term so you don’t get caught out.
• First-time buyer guidance: If terms like Loan-to-Value (LTV), Stress Testing, or Agreement in Principle make your head spin, a broker acts as your guide through every step.

So, why use a mortgage broker?

The biggest benefit is that they can take some of the legwork out of finding a mortgage.

A broker can compare mortgages rates from a range of lenders, explain the differences between them and handle parts of the application process.

Some brokers also have access to deals that aren’t available directly from a particular lender, although the range of mortgages available will depend on the broker and the lenders they work with.

Brokers can also be useful if your finances aren’t straightforward.

For example, self-employed workers, contractors or people with more than one source of income may find that some lenders’ criteria suit them better than others.

This doesn’t mean a broker can guarantee you’ll be accepted, but they can help identify lenders whose criteria may be a better fit for your circumstances.

They can also help you look beyond the headline interest rate. A mortgage with a slightly higher rate but lower fees could potentially work out cheaper overall than a deal with a lower rate and a hefty arrangement fee.

Could a broker get you a better mortgage deal?

A broker can’t promise you’ll get the cheapest mortgage or that you’ll be accepted by a particular lender.

However, they can help you compare the deals available to you and understand the overall cost.

That’s particularly relevant when rates are moving quickly. The Sun recently reported that the average two-year fixed mortgage rate had risen from 4.85% in February 2026 to 5.59%, while the average five-year fix had increased from 4.94% to 5.63%, according to Moneyfacts.

Mortgage rates are also influenced by financial markets and swap rates, rather than simply moving in line with the Bank of England base rate.

Nicholas Mendes of broker John Charcol recently explained to The Sun that when a lender offers a five-year fixed mortgage, it uses the five-year swap rate to help fund it, meaning changes in that rate can feed through to mortgage rates.

That means keeping an eye on the market can be worthwhile, but borrowers still need to consider their own circumstances rather than simply chasing the lowest rate available.

A broker can also help you factor in arrangement fees, valuation costs and potential early repayment charges, which can all affect the total cost of a mortgage.

How much does a mortgage broker cost?

Broker fees vary depending on how they operate, so always check their fee structure upfront:

Percentage-based brokers: Charge a percentage of your loan amount, typically 0.3% to 1%.

Fee-free brokers: Paid via finder’s fee (lender commission) once your mortgage completes, costing you £0 directly.

Flat-fee brokers: Charge a fixed fee, usually ranging between £300 and £700 (the UK average sits around £640).

First-time buyer in London

Property: First-time buyer flat costing £350,000

Deposit: 10% (£35,000)

Mortgage Loan: £315,000

What you pay for advice:

• Fee-free broker: £0 (they collect directly from the lender)
• Flat-fee broker: Typically £500 to £600
• Percentage-fee broker (e.g., 0.5%): £1,575

What if I’m a first time buyer?

A broker could be particularly helpful if you’ve never had a mortgage before.

As a first-time buyer there are plenty of terms to get your head around, from loan-to-value and fixed rates to arrangement fees and affordability checks.

And affordability is a growing concern for would-be buyers as mortgage rates remain significantly higher than the ultra-low rates seen several years ago.

They can also explain how the size of your deposit affects your loan-to-value ratio (LTV).

Generally, a larger deposit means borrowing a smaller proportion of the property’s value, which can open up a wider range of mortgage deals.

But a broker isn’t a substitute for checking that you can comfortably afford the repayments.

You should consider how your finances would cope if your mortgage payments increased when your fixed-rate deal ended.