What’s the average commission rate for mortgage brokers

When I first became a mortgage broker, I did what a lot of people do — I tried to figure out how much I could earn. A few Google searches in, and I found myself buried under vague figures, forum threads, and generic advice that didn’t paint a realistic picture of what life as a broker actually looks like — especially when it comes to commission and income.

And that’s the problem. Most new or aspiring brokers don’t have a clear idea of how we get paid, let alone how much. I didn’t fully understand it myself until I was in the thick of it — chasing completions, managing clawbacks, and learning what actually drives income on a sustainable level.

Let me break it down in plain English — from someone who’s done it, coached it, and helped brokers at every stage build six and seven-figure businesses with these exact lessons.

What Are the Main Ways Mortgage Brokers Get Paid?

There are three primary income streams for mortgage brokers in the UK:

1. Procuration fees — paid by the lender

2. Broker fees — paid by the client

3. Commission from protection products — paid by insurers

Let’s look at the real numbers.

• Procuration fees usually range between 0.30% to 0.50% of the mortgage amount.

• On a £250,000 mortgage, that means a broker could earn between £750 and £1,250.

• Broker fees typically range from £495 to £995, depending on your fee model and market.

• Protection commission can be up to 160% of the first year’s premium, with renewals depending on the provider.

When structured well, a single case (mortgage + protection) could generate between £1,500 and £3,000+ in revenue.

👉 For a full breakdown, check out my YouTube video: How Does Commission Work for Mortgage Brokers?

What Happens If You Don’t Understand Your Commission Model?

This is something I learned the hard way.

In the early days, I had a full diary and a packed pipeline… yet my income was inconsistent. Some months were decent. Others were a struggle. Why? Because I didn’t have a handle on my commission structure, and I hadn’t built a business model around sustainable income.

If you don’t understand where your money’s coming from — or worse, you’re undercharging out of fear — you end up working harder for less. That’s the path to burnout, not growth.

How Much Do Employed Mortgage Brokers Earn?

Employed mortgage brokers in the UK typically earn:

• Entry-level: £20,000 – £30,000 base salary + bonuses

• Mid-level (3–5 years): £30,000 – £50,000 base + bonuses

• Experienced: £50,000 – £80,000, sometimes with bonuses pushing six figures

Bonuses are often linked to case volume, but you won’t keep 100% of the income like a self-employed broker would.

👉 Want to know the pros and cons of going employed vs. self-employed? Watch this: Can You Become a Self-Employed Mortgage Broker?

How Much Do Self-Employed Mortgage Brokers Earn?

This is where things get interesting.

Your income depends on:

• Your commission split with your network

• How many cases you’re writing per month

• Whether you charge broker fees

• If you sell protection consistently

Here’s a rough guide:

• New brokers: £25,000 – £40,000 (year 1)

• 3–5 years in: £60,000 – £100,000

• Experienced brokers: £100,000+ (especially if scaling or building a team)

But keep in mind, self-employed brokers are also responsible for business costs — insurance, CRM systems, marketing, and more.

👉 If you're transitioning into the industry, this video is gold: What to Expect in Your First Year as a Mortgage Broker

What Role Do Broker Fees Play in Income?

This is one of the biggest levers you have.

I used to avoid charging broker fees out of fear — worried I’d lose clients. But when I finally introduced a flat fee of £595, not only did my income stabilise, but my conversion rate stayed the same. In some cases, it even improved — because people value what they pay for.

Here’s what I now teach:

• Charging £495 to £995 is the norm for good-quality advice.

• Clients expect to pay something — it’s about how you position the value.

• A broker fee creates consistency in months where lender payments are delayed.

👉 Still on the fence about charging fees? Watch this: Should You Charge a Broker Fee? Pros and Cons

How Does Protection Commission Boost Broker Income?

This was a game changer for me.

When I started embedding protection advice into every mortgage case, my income jumped — not because I was pushing something people didn’t need, but because I was delivering proper, holistic advice.

Here’s why it matters:

• A single protection case can generate £800–£1,500+ in commission.

• It’s paid faster and more consistently than mortgage commission.

• It builds client trust and future retention — especially when life changes happen.

👉 Watch this deep dive: Why Income Protection is the Most Important Insurance for Clients

What Should New Mortgage Brokers Know About Income Structure?

There are a few big takeaways I wish I’d known earlier:

1. Track Your Pipeline Like a CFO

Knowing how many cases you’ve submitted isn’t enough. You need to track projected income, timelines, potential clawbacks, and gaps.

2. Plan for Delays and Dry Spells

Just because you submit a case in March doesn’t mean you get paid in March. Set aside reserves. Treat your income like a business owner — not just a salesperson.

3. Negotiate Your Commission Split

Networks aren’t all created equal. If you’re giving away 30% of your income, ask yourself: what are you getting back? Training? Leads? Compliance support? Know your worth.

👉 To explore different network options, check out: Is it Better to Work Under a Network or as a Directly Authorised Mortgage Broker?

What’s the Bottom Line on Mortgage Broker Commission in the UK?

Here’s the honest truth:

• You can earn a little or a lot in this industry.

• The difference comes down to structure, pricing, positioning, and mindset.

• It’s not just about “getting leads” — it’s about designing a business that pays you what you’re worth.

I’ve seen brokers earning six figures with fewer clients than others earning half that — all because they’ve dialled in their commission model and offer.

So if you’re wondering, “What should I be earning as a mortgage broker?” — start by asking, “Is my current setup really working for me?”

🎥 Want a full breakdown of mortgage broker income streams, case examples, and how to structure your model?
Watch my full video:
👉 How Does Commission Work for Mortgage Brokers?