Side-by-side comparison
| Bank (direct) | Broker | |
|---|---|---|
| Lender choice | 1 (your bank) | 90+ UK lenders |
| Product range | Bank's own products | Whole market or panel |
| Specialist access | No | Yes (Pepper, Vida, Kensington, etc) |
| Adverse credit | Usually decline | Specialist lender match |
| Self-employed | Mainstream criteria only | Flexible income lenders |
| BTL portfolio | Limited | Full SPV and personal name panel |
| Fee structure | £0 broker fee | £0–£1,500 broker fee |
| Procuration fees | None earned | Earned from lender |
| Application admin | You handle | Broker handles end-to-end |
| Best for | Product transfer with existing lender | Almost all other cases |
When the bank actually wins
- Product transfer with your existing lender — loyalty rates often beat broker-accessible new business rates.
- You've already compared the market and confirmed your bank is competitive.
- Very simple residential case where the bank's rate is genuinely sharp.
- You want zero broker fee and accept the trade-off of single-lender choice.
When the broker wins decisively
- Adverse credit. Banks decline. Specialists (Pepper, Vida, Kensington, Bluestone, Together) approve.
- Self-employed. Some lenders accept 1 year accounts; others need 3 — bank shows one criteria.
- Contractor / zero-hours. Halifax, Kensington, Clydesdale, Saffron specialise.
- Buy-to-let portfolio (4+ properties). PRA portfolio lender pool is broker-only.
- HMO, holiday let, semi-commercial. Specialist lenders not on high street.
- Limited company SPV. Different lender pool entirely.
- Expat / foreign national. HSBC Expat, Skipton International, Santander International — broker-routed.
- Bad-credit BTL. Tiny lender pool, all specialist.
- 5×+ income multiples. Some lenders offer 5.5×–7× to specific profiles — broker matches you.
- Bridging, refurb, development. Mainstream banks don't offer.
The 'go direct to my bank' trap
The most common UK mortgage mistake. Why it fails:
- Your bank shows you 1 of 90+ lenders. Statistically, your bank is the best price ~1% of the time.
- Procuration fees (0.30%–0.40%) are baked into pricing whether you use a broker or not. Going direct doesn't save money.
- If your bank declines, you start from scratch with another lender — losing time and risking rate movements.
- You'll never know what the rest of the market would have offered.
The smart hybrid strategy
- Get an indicative rate from your bank (5 minutes online or in-app).
- Speak to a whole-of-market broker for free market comparison.
- If broker can't beat the bank meaningfully, take the bank deal.
- If broker finds material savings, use them — pay the fee, save the money.
- Always ask the broker how procuration fee varies between lenders they're recommending.
Worked cost-of-going-direct example
£250,000 mortgage, 5-year fix.
- Your bank's rate: 4.55%.
- Broker-found rate: 4.30%.
- Saving over 5 years: 0.25% × £250k × 5 = £3,125 (rough).
- Broker fee: £500.
- Net saving: £2,625.
Even on a vanilla case, the broker route usually wins.
Pros
- Broker = whole-of-market access; bank = one lender.
- Specialist lenders (adverse, self-employed, BTL portfolio) are broker-only.
- Brokers handle application admin end-to-end.
- Procuration fees are baked into all pricing — broker access usually free.
- Smart hybrid (bank quote + broker check) costs nothing and ensures best value.
Cons
- Broker fees can add £500–£1,500 for complex cases.
- Going direct to your bank is faster for product transfers.
- Some panel-restricted brokers aren't genuinely whole-of-market.
- Banks may give loyalty rates on product transfer below broker pricing.
- Broker quality varies — vet before committing.