Mortgage broker fees have surged by more than 24 percent in the past year, with landlords refinancing buy-to-let properties now paying an average of £623 per transaction, according to new research published by Boon Brokers.
The study, based on a survey of 2,000 mortgage borrowers conducted by TLF Research, found that average broker fees for property purchases increased by 28.6 percent year-on-year to £643. Remortgage fees rose by 24.6 percent to £623, adding significant costs for landlords looking to switch deals as fixed rates expire.
Regional variations in broker charges
The research revealed notable regional differences in broker fees. Landlords in Northern England, Wales and Northern Ireland typically paid less, while those in Scotland and the South East faced higher charges. With 85 percent of buyers reporting they were charged after their full mortgage application was submitted, the fees often came as a late addition to transaction costs.
Gerard Boon, managing director of Boon Brokers, said the findings highlighted widespread misconceptions about broker services. The research showed that 20 percent of buyers were unaware that fee-free brokers exist, while 31 percent did not know that fee-free brokers can access the same mortgage products as those charging fees.
“We shouldn’t blame the naivety of youth for this statistic as other age groups also scored high on this question,” Boon said, noting that nearly half of borrowers under 24 believed paying a broker fee would secure better interest rates – a misconception the research firmly debunked.
Fee-free options remain overlooked
This follows Landlord Knowledge’s February report on second charge lending, which highlighted growing demand for alternative finance routes as landlords manage portfolio costs. The latest findings suggest many are paying unnecessary fees when refinancing.
The survey found that 44 percent of borrowers paid a fixed broker fee, with some charged over £1,000. A minority had paid fees exceeding £2,000, particularly where brokers charged a percentage of the loan value. Some brokers charge a flat rate of 1 percent of the loan sum, which on a typical buy-to-let mortgage could add several thousand pounds to transaction costs.
The research also found that older borrowers were most likely to believe all mortgage brokers charge fees, with one in five over the age of 65 having never used a broker for this reason. This suggests a generation of landlords may have missed out on professional advice that could have secured better deals.
What this means for landlords
- If you’re remortgaging in 2026: Shop around for fee-free brokers – they have access to the same products as those charging £623 or more.
- Watch for: Late-stage fee disclosures after application submission – ask about all charges upfront before committing.
- Bottom line: Broker fees have increased by a quarter in 12 months, but paying more does not mean better rates or service.
Editor’s view
The findings expose an uncomfortable truth: many landlords are paying for something they could get for free. With £49.7 billion in buy-to-let mortgages maturing over the next two years, the refinancing wave will test whether borrowers have learned to ask the right questions. A 25 percent fee increase is unwelcome at any time, but it stings more when the alternative costs nothing.
Author: Editorial Team – UK landlord & buy-to-let news, policy, and finance
Published: 5 March 2026
Sources: Boon Brokers mortgage broker fees research, TLF Research
Related reading: Second charge lending hits £2.14bn as landlords tap equity without remortgaging
