How to Choose a Mortgage Broker: The Essential 2025 Guide

ajitkainth
Aug 13
5 min read

When it comes to securing the right mortgage, having an experienced and independent adviser by your side can make all the difference. APE Finance, based in Birmingham, specialises in offering impartial, whole-of-market advice, helping clients navigate the ever-changing mortgage landscape with confidence.

This guide explains what mortgage brokers do, the different types available, what to ask before you commit, and why working with a fee-free independent mortgage broker could be your smartest move.

Understanding Mortgage Brokers

A mortgage broker is a qualified professional who connects borrowers with lenders. Instead of going directly to a bank and being limited to its products, a broker explores a broad range of lenders to find a deal tailored to your needs.

At APE Finance, this means assessing your goals whether you’re buying your first home in Birmingham, remortgaging to save money, or investing in property and then matching you with the most suitable options.

What Do Mortgage Brokers Do?

Mortgage brokers are more than just deal-finders. They:

Assess your financial profile – income, credit history, and affordability.
Recommend suitable mortgage products – including fixed-rate, tracker, offset, and specialist loans.
Access exclusive deals – many lenders offer rates only available via brokers.
Manage your application – handling paperwork, liaising with underwriters, and chasing progress.
Offer impartial advice – ensuring recommendations align with your circumstances, not a lender’s sales target.

With APE Finance, you also gain local insight into Birmingham’s property market, helping you make informed decisions.

Why Use a Mortgage Broker?

Buying a property or remortgaging is often one of the largest financial commitments you’ll ever make. With hundreds of lenders and thousands of mortgage products available, finding the right deal can be daunting. This is where a mortgage broker’s expertise becomes invaluable.

How Mortgage Brokers Help Borrowers

A broker saves you time and effort by researching the market on your behalf. They can identify lenders more likely to approve your application, reducing the risk of rejection and unnecessary credit checks.

When Should You Use a Mortgage Broker?

You may benefit most from a broker if:

You’re a first-time buyer and unsure where to start.
You’re self-employed or have complex income sources.
You’ve had credit issues in the past.
You’re looking for a buy-to-let mortgage.
You want to remortgage for a better deal.

Did You Know?

Over 75% of UK mortgages are now arranged through brokers, according to the Financial Conduct Authority (FCA).
Mortgage brokers can access exclusive deals not available directly from banks, as noted by MoneyHelper.
Some brokers are “whole of market” – meaning they can compare products from a wide range of lenders – while others work with a limited panel.
According to MoneySavingExpert, many brokers work on a “no mortgage, no fee” basis, so you only pay if your mortgage completes.
Which? highlights that a broker’s advice is regulated by the FCA, giving you more protection compared to going it alone.

The Key Advantage of a Fee-Free Mortgage Broker

Fee-free brokers, like APE Finance, are paid a commission from the lender when your mortgage completes meaning you receive expert advice without paying out of your own pocket. This approach removes a significant barrier for many borrowers and ensures that the broker’s recommendations are not influenced by charging higher client fees.

The Risks of Getting No Advice

Opting to arrange your mortgage without professional help might seem like a way to save money, but it can cost you in the long run. Risks include:

Missing out on better rates or products.
Applying to the wrong lender and facing rejection.
Overlooking terms that could be costly in future.
Wasting time with unnecessary paperwork.

By using a regulated adviser such as APE Finance, you benefit from consumer protection, accurate product matching, and peace of mind.

What Types of Mortgage Brokers Are There?

Tied Brokers

They only offer mortgages from one lender. Your choice is limited, and you might not get the most competitive deal.

Multi-Tied Brokers

These work with a restricted panel of lenders better than tied brokers, but still limited.

Whole-of-Market Brokers

Whole-of-market brokers can search across the full range of UK lenders, including smaller building societies and specialist providers. APE Finance operates as a whole-of-market broker, ensuring clients in Birmingham have access to the widest possible choice.

Mortgage Broker Fees and Commissions

Mortgage brokers are generally paid in one of three ways:

Client fees only – You pay the broker directly, and they may or may not also receive lender commission.
Commission only – The broker is paid solely by the lender when your mortgage completes.
Combination – The broker charges you a fee and also receives lender commission.

At APE Finance, we operate on a fee-free commission model. We are transparent about how we’re paid, and our clients know there are no hidden costs.

Key Questions to Ask a Mortgage Broker

Are you a regulated mortgage broker?

Regulation by the Financial Conduct Authority (FCA) ensures professional standards and consumer protection.

Do you offer whole-of-market access?

Confirm they can search across all lenders, not just a small panel.

Will you tell me about direct-only deals?

Some mortgages are only available by going direct to a lender. A good broker will make you aware of these too.

What fees do you charge?

Check if the broker charges you or works on a commission-only basis.

What’s included in your service?

Will they complete the application, liaise with the lender, and chase progress?

When are you available?

Ask about their availability to answer questions or resolve issues.