How Much Does a Mortgage Adviser Cost?

If you are weighing up professional help, a fair first question is how much does a mortgage adviser cost — and what exactly you are paying for. It is a sensible thing to ask, and a good adviser will answer it plainly. This guide explains the main ways advisers charge across the market, what "fee-free" really means, and exactly what Wisely charges, so you can judge the value for yourself.

At Wisely, your initial consultation is always free, our mortgage advice fees are capped and explained in full before you proceed, and our protection advice carries no client fee at all. Here is how it all works.

The main ways mortgage advisers charge

There is no single standard. Advisers typically use one of these models, or a combination.

1. A fixed fee

You pay a set amount for the advice and arrangement. The appeal is clarity: you know the cost from the outset, whatever the size of your loan. Fixed fees vary widely between firms, so it is always worth asking what is included.

2. A percentage of the loan

Some advisers charge a percentage of the mortgage, commonly around 0.3% to 1%. On a large loan this can add up quickly — 1% of a £600,000 mortgage is £6,000 — which is why a capped or fixed fee often works out better for higher-value borrowing.

3. Commission from the lender only ("fee-free")

Here the adviser takes no fee from you and is paid a procuration fee by the lender instead — typically around 0.35% of the loan. This is what most "fee-free" brokers mean. It is not that advice is free; it is that a third party pays for it.

4. A combination

Many advisers, including Wisely on the mortgage side, charge a clear client fee and also receive lender commission, with both disclosed to you. The fee reflects the advice and work involved; the commission does not change the rate you are offered.

What "fee-free" really means

"Fee-free" is one of the most misunderstood phrases in the market. It does not mean the advice costs nothing — it means the lender pays the adviser instead of you. That is a perfectly legitimate model, but it is worth understanding the implications:

• The adviser is paid by the lender, and procuration fees vary between lenders.
• The cost has not disappeared — it is built into the wider system, and ultimately into the products lenders offer.
• A transparent client fee, by contrast, keeps the relationship straightforwardly between you and your adviser. You know precisely what you are paying, and the advice is accountable to you.

Neither model is dishonest. But "free" and "impartial" are not the same thing, and it is fair to know the difference before you choose.

What Wisely charges

We believe you should know exactly where you stand before you commit to anything. Here is our fee structure in full.

Your initial consultation is free

We get to know you and your goals at no cost and with no obligation, and we will always explain exactly what you would be charged before you proceed with any application.

Mortgage advice fees

Our mortgage fees are based on two things: the loan amount and the complexity of your circumstances.

• Standard — up to £499. For buying or remortgaging with no affordability hurdles or added complexity.
• Complex — up to £999. Where you need extra support due to affordability, credit history or more complex needs.

If anything falls outside this structure, your adviser will agree and explain any fee with you before you proceed — never afterwards. We also receive a commission from the lender, which depends on your circumstances and the loan amount and is disclosed to you in your mortgage Illustration (the European Standardised Information Sheet, or ESIS). That commission does not change the rate you are offered.

Please note that a minimum non-refundable fee may be requested at the point of application. Your adviser will explain what this is and when it becomes payable.

Protection and insurance advice — no client fee

When we arrange life assurance, critical illness cover, income protection, family income benefit, or home and contents insurance, we do not charge you a fee. Instead, the insurer pays us a commission based on a percentage of the premium you pay. In other words, our protection and insurance advice costs you nothing directly.

Why this is good value

• Our mortgage fees are capped — up to £499 for standard cases and up to £999 for complex ones — so you are protected from percentage-based charges that can balloon on a larger loan. On a bigger mortgage, a capped fee can be far cheaper than the 0.3%–1% some advisers charge.
• The right lender and rate for your circumstances can save far more over the life of your loan than the fee itself.
• A correctly packaged, first-time application avoids wasted attempts and credit-file footprints that can push you toward worse deals.
• Because you always know the fee upfront, and our protection advice is fee-free, there are no surprises.

What you are paying for

Whatever you pay, good advice buys real work and real value:

• A proper assessment of your circumstances and goals
• A whole-of-market search across a wide range of lenders (apart from deals available only by going direct to a lender)
• Eligibility checks so you apply where you are likely to be accepted
• A correctly packaged application to reduce delays and declines
• A regulated, accountable recommendation you can rely on
• Advice on protecting your mortgage and family

Advice you can check

Wisely is a trading style of Wisely Financial Services Ltd, an appointed representative of Pivotal Financial Limited, which is authorised and regulated by the Financial Conduct Authority (firm reference number 665649). You can confirm this on the FCA register at register.fca.org.uk. Our permitted business is advising on and arranging regulated mortgage contracts and non-investment insurance contracts.

The fees shown here are correct at the time of writing; your adviser will always confirm your exact fee before you proceed. Your home may be repossessed if you do not keep up repayments on your mortgage.

Find out exactly what it would cost you

The honest answer to "how much does a mortgage adviser cost" is that it depends on the adviser and your circumstances — but you should always be told clearly and upfront. With Wisely, the first conversation is free. Call us on 023 8268 1111 to book a free, no-obligation call and get a plain answer for your situation.