Mortgage Broker vs Going Direct to a Bank: Which Is Better?

For 80% of first-time buyers, a broker is the right choice. They typically work for free, have access to far more deals than your bank, and reduce the risk of rejection. Going direct can save time on a single product but limits your choice and shifts the work to you.

Here's the full comparison.

For first-time buyers in particular, the broker question is one of the first to settle — see our pillar How to get a mortgage as a first-time buyer in the UK. And whether you go direct or via a broker, you'll start the journey with a mortgage in principle.

What a mortgage broker actually does

A mortgage broker is a regulated intermediary who:

Reviews your finances
Searches mortgage products across the market (typically 90+ lenders for whole-of-market brokers)
Recommends a product
Submits the application to the lender
Manages the process through to offer

They are regulated by the FCA and must give "advised" recommendations — meaning they're legally required to recommend a suitable product, not just any product.

What going direct actually means

You go to your bank (or any lender) and apply directly. The bank's adviser can only recommend their own products. You either get an "advised" sale (they recommend a suitable product from their range) or "execution-only" (you choose, no advice).

Choice — broker wins

A whole-of-market broker accesses ~90+ UK lenders. Your bank shows you only its own range — perhaps 20–40 products at any one time.

Critically, brokers can access broker-only deals that aren't published anywhere consumers can see. Some lenders (Skipton, Coventry, many specialist lenders) are entirely intermediary-only — you cannot apply to them directly.

For first-time buyers, the broader pool dramatically improves your odds at low LTVs (5%, 10%) where some banks won't lend at all but specialists will.

Cost — broker often wins (or ties)

Brokers earn money in two ways:

Commission from the lender (usually £400–£700 per case, paid by the lender to the broker)
Fee from you (some brokers charge £0–£999)

The biggest UK online brokers are fee-free:

Habito — fee-free, whole-of-market
Mojo Mortgages — fee-free, whole-of-market
Trussle (now part of Mojo) — fee-free
L&C Mortgages — fee-free, whole-of-market

Independent local brokers and some online ones charge a fee (£300–£999) on top of lender commission. They argue this means more rigorous service. For straightforward cases, fee-free is usually fine.

Your bank doesn't charge a fee for the advice but takes its margin in the rate it offers.

Speed — direct often wins for simple cases

For a vanilla case (PAYE income, good credit, your bank's standard product), going direct can be marginally faster — no intermediary handoffs.

For complex cases (self-employed, low deposit, poor credit, unusual property), a broker is dramatically faster because they know which lenders will say yes and avoid the rejections that waste weeks.

Advice quality — broker wins

Brokers must justify their recommendation in writing — the "suitability letter" — explaining why a particular product matches your circumstances. If they recommend a product that turns out to be unsuitable, the FCA-regulated advice gives you a strong complaint route.

A bank adviser can only recommend products from their own range. If a better product exists elsewhere, they won't tell you.

Range of property types

Brokers know which lenders will lend on:

Flats above commercial premises
Non-standard construction
Listed buildings
Cladding-affected blocks
New-builds in your specific developer
Shared ownership
Self-build mortgages
Buy-to-let through a limited company

Banks tend to be conservative on these. A broker is essential for non-standard property.

Affordability — broker wins

Different lenders have different affordability calculators:

Some are generous on bonus or commission
Some are generous on contract income
Some are generous on rental income
Some are generous on multiple income streams

A broker runs your numbers through several calculators and identifies the most generous lender for your profile. Your bank only knows its own calculator.

For example, a teacher earning £40k base + £6k overtime might borrow: - £180,000 at one lender (counts overtime fully) - £160,000 at another (counts 50%) - £176,000 at a third

A broker finds the £180k. The first lender may not even be your bank.

Protection — both regulated, similar

Both brokers and bank advisers are FCA-regulated. Both must give suitable advice. Both are covered by the Financial Ombudsman Service if things go wrong. Equivalent in this regard.

When to go direct

You have a strong existing relationship with your bank and they're offering competitive rates
You're remortgaging within the same lender (product transfer)
You have a very simple case and you've shopped around to confirm the bank's offer is competitive
You're an experienced borrower comfortable navigating the process

When to use a broker

You're a first-time buyer
You're self-employed
You have any credit blemishes
You have a small deposit (5–10%)
You're buying a non-standard property
Your income is bonus / commission heavy
You don't have time to shop around lenders yourself
You want the broadest market view

The big online brokers (free, whole-of-market)

Habito — established 2016, free, fully online with strong app, good for first-timers
Mojo Mortgages — owned by RVU (also owns Confused.com, Uswitch). Free, hybrid online + phone advice
L&C (London & Country Mortgages) — older brand, free, traditional phone-and-paper service
John Charcol — premium independent, charges fee, strong on complex cases
Trussle — now under Mojo

For complex cases, also worth considering: The Mortgage Hut, The Mortgage Mum, Mortgage Advice Bureau branches.

How to choose a broker

Check:

Whole of market, not "panel of lenders" (limited)
FCA regulated (search FCA register)
Fee structure clearly disclosed upfront
Reviews on Trustpilot and Google
Speciality match (e.g. self-employed, BTL, FTB)
Communication style that suits you (app, phone, in-person)

Read How to choose a mortgage broker for a deeper guide.

Get a free mortgage quote — start with a free broker comparison.

Frequently asked questions

Do brokers know better deals than I can find online? Yes — many lenders have intermediary-only products that don't appear on price comparison sites or Google. These are often more flexible on lending criteria too.

Will using a broker harm my credit score? No — the broker uses soft credit checks for AIPs. Only the final application is a hard check, regardless of whether you went direct or via a broker.

Can a broker get me a lower rate than my bank's loyalty offer? Sometimes yes — they can compare your bank's product transfer offer against the rest of the market.

Are bank advisers worse? Not personally — they're often very experienced. But they can only recommend their own products, which limits choice.

What if my circumstances are very simple? Even simple cases benefit from access to the cheapest lender, which is rarely your existing bank.

Should I use multiple brokers? No — one whole-of-market broker is enough. Multiple brokers all submitting AIPs is not harmful (soft checks), but multiple full applications would damage your credit.

This article is for informational purposes only and does not constitute financial advice. Always consult a qualified mortgage adviser before making a decision.