How do mortgage brokers get paid?

Once they have completed their Certificate of Mortgage and Practice (CeMAP) and are licenced to practice, mortgage advisors, sometimes referred to as mortgage brokers, can earn an impressive income. As the breadth of their knowledge, experience, skills, and reputation grows, as should their rate of pay. However, there are several different ways in which mortgage advisors get paid in the UK. Read on to learn about the different payment structures adopted.


Choosing a commission-based payment structure can take a mortgage advisor’s income to impressive heights. Such payment structures are sometimes the most attractive as they use how money is made on selling a mortgage loan as a basis.

Commission-based payment structures see the advisor paid a percentage of the full loan amount awarded. This percentage will vary and typically depends on how complex the loan is, associated closing costs and the rate of interest. Depending on the loan details, the advisor can make a significant amount of money from just one sale. As a result, they can potentially earn more than a broker engaged in salary-based payment structure.


More consistent, a salary-based payment structure can provide advisors with a steady income. This kind of payment structure is used often in direct lending because it enables the lender to efficiently assess risk and to make decisions based on their personal assessment.

Mortgage advisors employed on a salary basis can negotiate a specific salary to meet their individual needs. On top of this, they can receive benefits like retirement plans and health insurance. A salary-based structure also allows brokers to get bonuses, regular pay rises and other incentives that a commission-based structure cannot offer.

Salary-based payment structures give advisors security, which can be desirable for many. It also allows them to focus on delivering a high-quality service to their clients, instead of worrying how they can profit from a transaction.

As a result, they can build better client relationships and provide enhanced customer service. Furthermore, advisors can specialise in specific areas because they aren’t reliant on commission-based earnings.


Fee-based payment structures are an industry-wide approach to payment for mortgage advisors. This payment structure is based on a set fee that is divided between the mortgage lender and the mortgage broker for every mortgage loan that is successfully completed.

The fee is divided between the mortgage broker and the mortgage lender at a predetermined percentage. Generally, industry trends will determine the size of the fee and they can range from 0.5%to 2.00% of the total amount of the mortgage loan. In some instances, lenders may insist that the mortgage advisor earns a minimum amount of money before they receive payment.

It’s important to note that the fee-based payment structure is today the most common method of payment used by mortgage advisors. A fee-based payment structure is a popular method for payment of mortgage advisors because of established industry trends, but can be beneficial to advisors as they can receive a commission without ever having to be hired by a lender.

Furthermore, it is also important to understand that the fee splitting process and all associated percentages must be examined closely to make sure that both parties involved are receiving a fair deal.

Combination Payment Structures

The last payment structure option is often considered to offer the “best of both worlds” for brokers. Combination payment structures offer advisors the option to combine commission with a regular salary. This payment structure is ideal for financial advice but also loan origination as advisors can earn a steady income while being rewarded for their efforts during client consultations.

With a combination payment structure, brokers can make a base salary for their professional services and receive a commission for any loans that they originate. This payment structure also enables brokers to get a bonus should they exceed a specific target for loan origination.

This structure lets brokers access the stability of an annual salary while being rewarded for their dedication and the hard work they put in. It allows advisors to enjoy a secure income but simultaneously earn more if they perform well. Additionally, it can enable mortgage advisors to feel more fulfilled with greater levels of job satisfaction because they have a far more direct connection to how much money they can make in their role.

A CeMAP training company you can trust

If you would like to earn an attractive salary as a professional mortgage advisor, we can help. The Financial Conduct Authority (FCA) insists that all brokers in Britain must have a recognised qualification to practice, like a CeMAP. Reach out to Beacon Financial Training to find the right CeMAP study course for your needs. We offer a wide range of options ranging from live webinars and home study courses to traditional classroom, so call us now to discuss your individual needs.


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