How Does Commission Actually Work for Mortgage Brokers?

Most new mortgage brokers assume commission works like a salary.

Do the work.
Close the case.
Get paid.

That assumption causes more early frustration than almost anything else in mortgage broking.

Commission for a mortgage broker is not triggered by effort, advice, or activity. It is triggered by completion. Until that point, income is theoretical, not real. Understanding this distinction early is one of the biggest factors in whether a new mortgage advisor feels in control or constantly under pressure.

This article explains how commission actually works for mortgage brokers in the UK, why income feels delayed and inconsistent at the start, and what experienced brokers learn to manage differently over time.

When Does Commission Actually Get Paid for a Mortgage Broker?

Commission is not earned when advice is given.

It is earned when a case completes.

This is a critical difference that many new mortgage brokers underestimate. You can deliver a flawless recommendation, submit a perfect application, and still have no payment for weeks or months.

Commission is typically triggered when:

• The mortgage completes

• Funds are released

• The lender confirms completion to the network or firm

Until that point, no procuration fee is payable.

This is why early months feel financially uncomfortable. The work always comes before the income. In mortgage broking, effort and payment are separated by time.

From a mortgage business coaching perspective, this is one of the first mental shifts new brokers need to make. Broking is not paid labour. It is delayed revenue tied to outcomes.

Why Does Commission Payment Lag Behind the Work?

Commission lags because mortgage broking sits inside a long, multi-party process.

Even when you do everything right, you are dependent on:

• Conveyancers

• Lenders

• Valuers

• Chains

• Client decisions

Any delay in that chain delays payment.

Common causes of delayed commission include:

• Long conveyancing timelines

• Chain-related delays

• Lender backlogs

• Valuation issues

• Clients withdrawing or changing plans

None of these reflect your competence as a mortgage advisor. They reflect the structure of the system.

New mortgage brokers often internalise these delays as failure. In reality, they are structural features of the industry. Understanding this helps separate emotional response from commercial reality.

Why Does Commission Feel So Inconsistent in the Early Stages?

Commission feels inconsistent because it is timing-dependent, not activity-dependent.

You can have a month of intense work with no completions and no income. You can also have a quieter month where several cases complete at once.

This creates the illusion that income is random.

In practice, it is delayed.

Early inconsistency happens because:

• Pipelines are small

• Cases do not overlap yet

• A single delay affects total income

• There is no backlog of future completions

Established mortgage brokers still experience delays, but they have volume and overlap. New brokers do not.

This is why early cash flow management matters more than motivation. No amount of enthusiasm shortens conveyancing timelines.

Mortgage business coaching often focuses on helping brokers understand this timing gap so they can plan around it rather than react to it.

How Do Procuration Fees and Commission Splits Usually Work?

Most new mortgage brokers do not receive the full procuration fee paid by the lender.

Commission is usually split between several parties.

These may include:

• The network

• The firm or principal

• The broker

• Introducers, in some cases

The percentage you receive depends on your setup.

For example:

• A directly authorised broker may retain a higher percentage but carry more costs

• A network-appointed representative may receive a lower percentage but benefit from compliance, systems, and support

• Introducer agreements may further reduce net commission

This is why gross commission figures are often misleading.

What matters is net commission after:

• Network splits

• Firm splits

• Introducer fees

• Ongoing costs

Understanding this early prevents disappointment later. Mortgage brokers who focus only on headline procuration fees often struggle when actual take-home income looks very different.

Why Does Effort Not Equal Income for New Mortgage Brokers?

Mortgage broking does not reward intensity.

It rewards completion.

You can be extremely busy and still unpaid.

This is one of the hardest adjustments for people entering the industry, especially those coming from salaried or commission-on-sale roles.

Early income is influenced more by:

• Pipeline size

• Case progression quality

• Completion probability

• Cash reserves

Than by:

• Hours worked

• Number of calls made

• Number of submissions

Rushing cases often slows them down. Poor fact-finds create rework. Weak packaging causes lender queries. All of these delay completion and therefore payment.

From a coaching standpoint, this is why systems, structure, and process matter more than raw effort in the early stages of a mortgage broker’s career.

What Role Does Pipeline Management Play in Commission Stability?

Pipeline management is the bridge between effort and income.

A pipeline shows:

• How many cases are live

• Where each case is in the process

• How close each case is to completion

• Which cases are at risk of delay

Without a pipeline, income feels unpredictable.

With a pipeline, delays are expected and planned for.

Effective pipeline tracking helps mortgage brokers:

• Forecast future income more accurately

• Avoid emotional reactions to quiet weeks

• Identify bottlenecks early

• Focus effort where it accelerates completion

This is one of the areas mortgage business coaching typically addresses early. Not because it increases effort, but because it reduces uncertainty.

As pipelines overlap, commission stops feeling random and starts feeling reliable.

Why Does Cash Flow Matter More Than Motivation Early On?

Motivation does not pay bills.

Cash flow does.

New mortgage brokers often assume motivation will carry them through the early months. In reality, it is financial resilience that determines whether they stay in the industry long enough to stabilise.

Early-stage realities include:

• Income arriving months after work

• Irregular payment patterns

• Unpredictable completion timing

This is why many experienced mortgage advisors recommend:

• Having savings before starting

• Reducing fixed personal costs

• Avoiding lifestyle inflation

• Planning for delayed income

Mortgage business coaching often focuses on expectation management here. Not to discourage new brokers, but to prevent avoidable stress.

Understanding cash flow mechanics allows brokers to make rational decisions rather than emotional ones.

What Should New Mortgage Brokers Expect Instead of Smooth Income?

Early income is rarely smooth.

It usually arrives in bursts.

One completion can feel significant.
A quiet month can feel alarming.

This volatility is normal.

Over time, several things change:

• Pipelines grow

• Cases overlap

• Completion dates cluster

• Income stabilises

This is the point where commission starts to feel predictable.

Not because the system changes, but because your position within it does.

Mortgage brokers who reach this stage typically do so by focusing on consistency rather than intensity.

What Does Commission Structure Mean for Local Mortgage Brokers?

For mortgage brokers operating in specific locations, such as [town] or [city], commission timing is still governed by the same rules.

Local SEO, Google Business Profile optimisation, and local mortgage enquiries can improve lead flow, but they do not change when commission is paid.

Local marketing helps with:

• Lead consistency

• Pipeline growth

• Brand recognition

It does not eliminate delays.

This is why experienced mortgage brokers treat marketing, pipeline management, and cash flow as connected systems rather than separate activities.

Educational resources on mortgage marketing and lead generation, such as those shared on the Ash Borland YouTube channel at https://www.youtube.com/@AshBorland, often emphasise this systems-based approach.

What Is Commission for Mortgage Brokers Not Designed to Do?

Commission in mortgage broking is not:

• A monthly salary

• Immediate payment for effort

• A measure of personal worth

• Designed for short-term comfort

It is designed to reward completed outcomes.

Understanding what commission is not helps remove unrealistic expectations that cause early burnout.

This reframing is a common theme in mortgage business coaching, particularly for brokers transitioning from employed roles into self-employed or semi-self-employed models.

What Is the Real Lesson About Commission for Mortgage Brokers?

The real lesson is that commission rewards patience and process.

Mortgage brokers who succeed long term do not panic when income is delayed. They understand timelines, manage pipelines, and control cash flow.

They focus on:

• Completion probability, not just volume

• Quality of cases, not speed

• Systems that support consistency

Once pipelines overlap and systems are established, commission stops feeling random.

It starts feeling reliable.

This shift does not happen by accident. It happens through understanding how the industry actually works and building around those realities.

For brokers who want deeper education around systems, structure, and sustainable income, resources such as the FREE 30-Day Mortgage Broker Boost at https://ashborland.com/boost and longer-form training on https://www.youtube.com/@Mortgagebusinessmastery are designed to support that learning without sales pressure.

Why Does Understanding Commission Early Matter for Long-Term Success?

Many capable mortgage brokers leave the industry not because they lack skill, but because they misunderstand timing.

They expect effort to equal income immediately.

When it does not, they assume something is wrong.

Understanding commission mechanics early reduces unnecessary stress, improves decision-making, and increases the likelihood of staying long enough to reach income stability.

From an industry coaching perspective, this understanding is foundational. Without it, no amount of marketing, lead generation, or sales training will feel effective.

Commission is not broken.

It is just delayed.

And once that is understood, mortgage broking becomes far more predictable than it first appears.