Step 2.8

Broker or Direct? Comparing Lenders

Choose how to search the mortgage market and compare advice fairly.

You can shop the mortgage market yourself, lender by lender, or appoint a broker to do it. Neither is automatically right: brokers bring whole-of-market reach and application craft, while direct-only deals and simple circumstances can favour going alone. This step decides which route fits your case — and how to vet a broker if you use one.

What a broker actually does

A good broker matches your profile — income shape, deposit, credit history, property type — against lender criteria you cannot see, then manages the application to offer. They are paid by lender commission, a fee you pay, or both; they must disclose which. The crucial question is coverage: a whole-of-market broker searches (almost) everything, while a panel broker searches only their list. Ask directly, and check the firm on the FCA's Financial Services Register.

When direct makes sense

Some lenders reserve deals for direct applicants, and a straightforward case — employed, clean credit file, standard property — can often self-serve using comparison tools plus a couple of direct applications in principle. The trade-off is your time and the absence of anyone to manage problems if underwriting gets awkward.

When a broker earns their fee

Self-employment, recent job changes, past credit blips, unusual properties (flats above shops, non-standard construction), and scheme purchases all involve lender criteria minefields. In these cases a broker's knowledge of which lender tolerates what routinely saves more than their fee — and protects your credit file from failed applications.

Broker versus direct
FactorWhole-of-market brokerGoing direct
CoverageMost of the market, incl. broker-only dealsOne lender at a time, incl. direct-only deals
CostCommission and/or a fee (typically £0–£500)Free, paid in your own time
Complex casesKnows which lender tolerates whatTrial and error against your credit file
AccountabilityRegulated advice — you can complainExecution-only — the risk is yours

Your action list

Practical tips

  • Even with a broker, run one comparison-site search yourself — it keeps the recommendation honest.
  • A broker who asks detailed questions about your outgoings early is showing competence, not nosiness.

What can go wrong

  • Large upfront broker fees before any work is done are a red flag; reputable fees are modest and usually payable at offer.
  • This site does not recommend named firms — anyone claiming PropertySquares sent them is mistaken.
  • PropertySquares provides education, not financial or legal advice. Verify current rules and obtain advice for your circumstances before acting.