Mortgage Affordability
Affordability Myth #9: “Brokers recommend the product where they’d get most commission”
2 minute read
Rana Miah | June 18, 2025 Share
It’s a common thought – that mortgage brokers are just trying to make money by recommending the product with the highest commission, even if it’s not right for you.
But that’s not how it works.
The reality
Yes, brokers do earn commission. But here’s the thing: we’re regulated by the Financial Conduct Authority (FCA). This means we’re legally required to act in your best interest. Recommending a mortgage just because it offers a higher commission can lead to serious consequences, like facing large fines.
Below is a table showing some standard commission rates and what we’d earn on a £250,000 mortgage:
| Commission Rate | Commission Earned | Difference |
| 0.33% | £825 | 0 |
| 0.35% | £855 | +£50 |
Reputable brokers are focused on finding the right mortgage for you, not just on earning a bit more. The commission difference is often very small, and we know that the risk of losing your trust is far more damaging.
What to think about instead
When you’re choosing a broker, make sure they’re upfront about how they’re paid and why they’re recommending certain products. A good broker will be happy to explain their reasoning, because we want to help you find the best deal that fits your needs.
Imagine a local shop owner who wants to build trust with their customers. They’re not going to push a product just to make a quick sale – they want to make sure you’re happy so you’ll come back. That’s the same mindset reputable mortgage brokers have. We’re focused on building relationships, not just closing a deal.
Bottom line?
Don’t hesitate to ask your broker how they’re paid and why they’re recommending a particular mortgage. A good broker will always prioritise your needs, not the commission.
Share
