What’s the Difference Between a Restricted and Independent Mortgage Broker?

Restricted vs Independent Mortgage Broker: Which is Best for Your Career?

If you're thinking about becoming a mortgage broker, one of the biggest decisions you'll face is whether to work as a restricted broker (tied to certain lenders) or as an independent mortgage broker (whole-of-market).

When I started in the industry, I didn’t realise how much this choice would impact my income, career growth, and even my day-to-day job satisfaction. I’ve worked with hundreds of brokers over the years, and trust me—picking the wrong route can lead to frustration, limited earnings, or feeling stuck in a role that doesn’t suit you.

Let’s break down the differences between restricted and independent mortgage brokers and help you make an informed decision.

What is a Restricted Mortgage Broker?

A restricted mortgage broker is tied to a specific lender or a limited panel of lenders. This means they can only offer mortgage products from the providers they are affiliated with. This is common for brokers working in banks, estate agencies, or financial services firms.

Pros of Being a Restricted Mortgage Broker

• Easier to Get Started – Many banks and networks offer structured training, leads, and compliance support.

• More Stability – If you’re employed, you’ll likely have a basic salary plus commission.

• Less Compliance Burden – The company handles regulatory requirements, making it easier to focus on clients.

Cons of Being a Restricted Mortgage Broker

• Limited Mortgage Options – You can only recommend products from a set panel of lenders, which may not be the best deal for your client.

• Lower Commission Potential – You earn less per deal compared to independent brokers.

• Less Career Flexibility – You follow company policies and lender restrictions rather than having full control over your business.

Want to know what it’s like to work for a company as a mortgage broker? Watch this video: What’s the Difference Between Working as an Independent Broker and for a Company?

What is an Independent Mortgage Broker?

An independent mortgage broker, also known as a "whole-of-market" broker, has access to mortgage products from all lenders. They can work as a self-employed broker or as part of an independent brokerage firm.

Pros of Being an Independent Mortgage Broker

• More Mortgage Options – You can find the best mortgage for each client, increasing your value and trustworthiness.

• Higher Earning Potential – You can set your own fees and commissions.

• Greater Career Control – You decide how you run your business, including branding, marketing, and client acquisition.

Cons of Being an Independent Mortgage Broker

• More Responsibility – You handle compliance, marketing, and lead generation yourself.

• Financial Risk – If you’re self-employed, there’s no guaranteed income.

• More Admin Work – Keeping up with lender criteria and compliance takes time.

Thinking about becoming self-employed as a mortgage broker? Watch this video: Can You Become a Self-Employed Mortgage Broker?

How Do You Choose Between Restricted and Independent Mortgage Brokering?

The decision comes down to what you want from your career. Here’s what you should consider:

1. Do You Want Security or Control?

• Restricted brokers have a structured environment, which can be a great starting point.

• Independent brokers enjoy full control over their business and income but take on more risk.

2. Do You Prefer Support or Freedom?

• Restricted brokers get leads and training from their employer.

• Independent brokers have more freedom but must generate their own business.

3. What Are Your Earning Expectations?

• Restricted brokers may have a stable salary but limited commission.

• Independent brokers can earn significantly more but only if they build their own pipeline of clients.

4. How Important is Client Trust to You?

• Restricted brokers can only offer specific products, which may not always be the best fit for the client.

• Independent brokers have full access to the market, making it easier to offer unbiased advice and build long-term relationships.

Want to learn more about mortgage broker earnings? Watch this video: How Much Can You Earn as a Mortgage Broker in the UK?

What Are the Long-Term Career Benefits of Each Path?

Many brokers start in a restricted role to gain experience before transitioning to independence. This can be a smart move, as it allows you to learn the industry while having financial security.

However, if your long-term goal is to build your own brand, scale your business, and have unlimited earning potential, independent brokering is the better path. It requires more effort initially but gives you full control over your success.

Thinking about career progression as a mortgage broker? Watch this video: What Is the Career Progression Like for Mortgage Brokers in the UK?

What is the Business Lesson from This?

Your career should align with your long-term vision. Too many brokers focus on short-term convenience instead of setting themselves up for future success. If you want to thrive, take the time to plan where you want to be in five to ten years.

The most successful mortgage brokers aren’t just reacting to opportunities—they’re strategically choosing their path based on their goals, strengths, and lifestyle preferences.

Final Thoughts: Should You Be a Restricted or Independent Mortgage Broker?

Both paths have their pros and cons. If you value stability and structured support, a restricted role might be ideal. If you prefer independence, higher earnings, and full control over your business, going independent is the way forward.

Either way, the key is to make an informed decision—because once you’re in, switching paths can be challenging. Choose wisely and set yourself up for long-term success.