Broker fees

How broker fees work in commercial finance

Broker remuneration varies across the commercial finance market, and it's a fair question to ask before you engage anyone. Here's how the common models work and what you should expect to see in writing.

Category: Costs & pricing

Product: Commercial Loans

Lender-paid commission: Common on many products, at no extra cost to you
Broker fee: Sometimes charged, typically 0.5%–2% of the loan
Disclosure: Should always be in writing before you proceed
Retainer: Occasionally used for complex or long-running cases

Lender-paid vs client-paid models

On many bridging, commercial mortgage and asset finance deals, the lender pays the broker a commission or procuration fee, meaning there's no direct cost to you beyond the lender's own charges. Some brokers additionally charge a client fee, particularly on complex cases or where significant work is involved in packaging the application — this should always be agreed and disclosed upfront.

What a broker fee typically covers

Where a fee is charged, it usually reflects the work of assessing your situation, approaching multiple lenders, negotiating terms, packaging the application and project-managing it through to completion. On complicated cases — multiple properties, unusual income, tight deadlines — this can represent significant hours of specialist work rather than a simple introduction.

Questions worth asking before instructing

Ask whether the broker is paid by the lender, by you, or both; whether any fee is payable if the deal doesn't complete; and whether the fee is a fixed amount or a percentage that scales with loan size. A reputable broker will answer these plainly and put the answer in writing before you commit any money.

Why whole-of-market access matters more than the fee itself

A broker tied to a small panel, or paid more by certain lenders, has less incentive to find you the genuinely best deal. Whole-of-market access, with fee structures disclosed upfront regardless of which lender is used, keeps the incentive aligned with getting you the right outcome rather than the most convenient one.

Frequently asked

Do I always have to pay a broker fee?

No — on many deals the lender pays the broker directly and there's no separate client fee. Where a fee does apply, it should be disclosed and agreed with you in writing before any work begins.

Is it normal to pay a fee even if the deal doesn't complete?

Some brokers charge a fee for work carried out regardless of outcome, particularly on complex cases; others only charge on successful completion. This should be clear from the outset — ask before instructing.

Does using a broker cost more than going direct to a lender?

Not typically — where the lender pays the broker's commission, the rate you're offered is usually the same as, or better than, going direct, since brokers can access rates not always available on the high street.

How do I know the broker isn't just recommending the lender that pays them most?

Ask directly how they're remunerated on each option presented, and look for a broker who is transparent about this and who compares terms across a genuinely wide lender panel.

Can broker fees be added to the loan?

Where a client fee applies, it can sometimes be added to the facility rather than paid upfront, though this depends on the lender and product — worth raising early in the process.

Ask us how we're paid, upfront

Call 0345 2690628 — we'll explain our fee structure before you commit to anything.

Call 0345 2690628 Send your deal details