Should I Use A Mortgage Broker Or Bank, Which Is Better?
- ajitkainth
- Aug 29, 2025
- 5 min read
Introduction
When it comes to getting a mortgage, one of the first questions people ask is simple: should I use a mortgage broker or go directly to my bank? The choice you make can have a huge impact on how much you pay over the lifetime of your mortgage, the speed of approval, and even whether you get approved at all.
This guide breaks down everything you need to know about mortgage brokers versus banks, including their roles, pros, cons, costs, and who they’re best suited for. By the end, you’ll have a clear picture of which option makes sense for your personal situation.
Understanding the Basics of Mortgages
What is a Mortgage?
A mortgage is a loan that allows you to buy a home without paying the full price upfront. You borrow the money from a lender and pay it back in monthly installments with interest. The property acts as security for the loan.
How Mortgage Lending Works
When you apply for a mortgage, a lender assesses your income, credit history, and financial commitments. If approved, they offer you a loan amount, interest rate, and repayment terms. You can go directly to a bank for this, or you can use a broker who searches the market for deals that fit your profile.
Key Players in the Mortgage Market
Banks and Building Societies: Offer mortgages directly to customers.
Specialist Lenders: Often available only through brokers, catering to self-employed or credit-challenged borrowers.
Mortgage Brokers: Middlemen who search multiple lenders and help you secure the most suitable deal.
Who Are Mortgage Brokers?
Definition and Role of a Mortgage Broker
A mortgage broker is a professional who works on your behalf to find the right mortgage. Instead of you applying to different lenders one by one, the broker compares multiple options to save you time and effort.
How Brokers Find Mortgage Deals
Brokers have access to a wide panel of lenders. Some lenders only deal with brokers and do not advertise directly to the public. This means brokers can sometimes secure exclusive deals with lower rates or better terms than you would find on your own.
Pros and Cons of Using a Broker
Pros:
Access to multiple lenders and a wider choice of products
Tailored advice based on your financial situation
Help with paperwork and application process
Support for complex cases such as self-employed borrowers or those with poor credit
Cons:
Some brokers charge fees in addition to commission
Not every broker covers the entire market
Commission-based incentives may affect recommendations
Who Are Banks in the Mortgage Process?
How Banks Offer Mortgage Products
Banks offer mortgage products directly to their customers. If you already have an account with a bank, the process can sometimes be simpler because they already know your financial history.
Advantages of Going Directly to a Bank
No broker fees to worry about
Loyalty benefits if you are already a customer
A straightforward and direct process
Disadvantages of Relying Solely on Banks
Limited to only that bank’s mortgage products
May not always offer the most competitive rates
Can be stricter with lending criteria, especially for complex financial profiles
Key Differences Between a Mortgage Broker and a Bank
Here are the main differences you need to know when comparing a broker with a bank:
Range of Products Offered
Brokers search across multiple lenders
Banks only provide their own mortgage products
Fees and Commission Structures
Brokers may charge a fee but often save you money long term with better deals
Banks typically do not charge for advice but may offer higher rates
Speed and Convenience
Brokers handle paperwork and negotiations which saves you time
Banks may be quicker if you are an existing customer
Expertise and Personalization of Service
Brokers provide tailored guidance for all financial situations
Banks usually offer standard advice with less flexibility
How to Decide What’s Best for You
Use this comparison table to help make your decision:
Factor | Consider a mortgage broker if… | Consider a bank if… |
Financial situation | You are self-employed, have irregular income, or less-than-perfect credit. | You have stable income, strong credit, and a straightforward financial profile. |
Options | You want the widest range of deals including exclusive broker-only products. | You are confident your bank’s limited range will suit your needs. |
Support | You are a first-time buyer or want full guidance through the process. | You prefer direct communication and do not need extensive support. |
Costs | You want the lowest possible interest rate even if it means paying a broker fee. | You want to avoid upfront or service fees and do not mind missing out on other deals. |
Key Highlights
Mortgage brokers offer choice, flexibility, and hands-on support.
Banks provide familiarity, direct service, and often no additional fees.
The right choice depends on your financial profile and personal preferences.
Did You Know?
Nearly two-thirds (64 %) of UK first-time buyers used a mortgage broker to purchase their first home in 2023. This marks a sharp increase from just 36 % in 2022, according to Aldermore’s First-Time Buyer Index. Mortgage Professional
Some of the best mortgage deals are available only through brokers. As noted by NerdWallet, many lenders “do not work directly with borrowers,” so access to their offers often requires going through a mortgage broker. NerdWallet
Even a 0.5 % difference in interest rate can save or cost you thousands over the life of your mortgage. For example, lowering the rate by just half a percentage point could save tens of thousands of dollars over a 30-year term. CBS Newsloanfactory.com
Key Takeaways
A broker offers flexibility and market access while a bank provides simplicity and trust.
First-time buyers and those with complex situations often benefit more from brokers.
Borrowers with stable finances and loyalty perks may find banks a better choice.
Comparing both before deciding is always the smartest approach.
Making the Right Choice with Ape Finance
Deciding whether to use a mortgage broker or a bank is not a one-size-fits-all decision. The right path depends on your personal circumstances, goals, and how much support you want during the process. If you have a straightforward financial situation and prefer to keep things simple, going directly to your bank might be the right choice. However, if you want access to a wide range of products, expert advice, and someone to guide you through the entire journey, a mortgage broker is often the smarter option.
At Ape Finance, we specialise in helping people secure the best mortgage deals for their unique situations. As an independent mortgage advisor, we work with a wide panel of lenders, giving you access to products you would not find by going directly to a bank. Our role is to make the process easier, clearer, and more tailored to you. Whether you are a first-time buyer, self-employed, or simply looking for the most competitive rate, we are here to support you every step of the way.
If you want to learn more about the value of independent mortgage advice, check out our detailed guide here: What are the benefits of using an independent mortgage advisor?.
The best way forward is to explore your options with confidence. By working with Ape Finance, you can feel assured that you are making the right choice for your future home and financial wellbeing.
FAQs
1. Do mortgage brokers save you money?
Yes, brokers often have access to exclusive deals and can secure better rates than you may find directly.
2. Can a bank offer a better deal than a broker?
Sometimes, especially if you are an existing customer with loyalty benefits.
3. Are mortgage brokers only for people with bad credit?
No, brokers are for everyone. They are especially useful for first-time buyers and those who want more options.
4. How do I know if a broker is trustworthy?
Make sure they are FCA-regulated and ask upfront about their fees.
5. Should I speak to both a bank and a broker?
Yes. Comparing both ensures you get the most competitive deal for your situation.
