Mortgage Market Under Pressure: Borrowers Demand Fee and Commission Clarity [August 2025 Study]

New research from Boon Brokers reveals that while mortgage brokers are legally required to disclose commission and fees, many UK consumers are confused about how it all works, with an overwhelming majority calling for clearer, more detailed explanations. Download the full research file in the footer of this article.

Key Findings:

• 96% of respondents want brokers to provide both written and verbal explanations of commission and fees before an application.
• 85% of respondents do not believe brokers should charge both a client fee and receive commission
• 67% of respondents did not receive a full written breakdown of commission earned
• 66% of respondents stated that they did not have a full understanding of both broker commission and fees
• 87% of respondents say transparency strongly influenced their trust in brokers
• 72% of respondents aged 55 – 64 prefer written documentation that covers client fees and commission over verbal breakdowns
• 47% of respondents aged 25 – 34 would only work with brokers who are fully transparent about commission and fees
• 25% of respondents said that commission was either mentioned only briefly or not at all

Data Summary:

To gain deeper insight into the public’s understanding of mortgage broker income, Boon Brokers’ latest research explores both how aware consumers are of how brokers earn commission and client fees, and how clearly this information is communicated in plain language across the UK.

While brokers maintain their compliance with the Financial Conduct Authority (FCA) regulations by providing written disclosure of commission and fees, our latest research shows that many borrowers still struggle to understand exactly what they are paying and why. Disclosure may exist in principle, but without clear, jargon-free explanations, consumers remain uncertain about the fairness and impartiality of advice.

The research also highlights a wider market challenge: when disclosure exists but is unclear, or when brokers charge a direct fee in addition to earning lender commission – commonly called “double dipping” – borrowers are struggling to understand exactly how and why they are being charged, undermining trust in the mortgage sector.

Today, borrowers are making some of the most important financial decisions of their lives, yet remain uncertain about the full cost and structure of client fees and commission. As a result, the research captures consumers’ demand for transparency: straightforward written and verbal explanations of client fees and commission to rebuild confidence and trust in the mortgage market.

Broker Fees and Consumer Confusion

The research revealed widespread confusion about how brokers are paid, including both direct fees and commission, with many borrowers unsure how these earnings interact.

Despite disclosure of commission being a legal requirement, 66% of respondents did not fully understand how brokers earn both fees and commission, while the remaining 34% had only a general idea without confidence in the details. This demonstrates that, for the majority of consumers, broker remuneration remains far from clear in practice.

Just 31% of respondents understood that lender commission varies by case, leaving 69% uncertain about how broker income is structured, further illustrating the challenges borrowers face in understanding both what their client fees cover and how brokers earn commission.

Misconceptions were widespread: some believed all lenders pay the same commission (12%), that commission is standardised to prevent bias (5%), or that brokers receive a fixed fee regardless of lender (8%), underscoring general confusion about both commission and broker fees.

When asked about brokers earning both a direct fee and lender commission – often called double dipping – 85% of respondents said this practice should be clearly explained, covering both fees and commission, to ensure complete fairness and trust.

Interestingly, the research revealed that 4% of respondents simply assumed that by paying a direct fee, the broker would not therefore also receive commission. This shows that, even when disclosure meets FCA requirements, borrowers often lack the clear explanation needed to fully understand broker compensation.

The Demand for Transparency

The research highlights a stark mismatch between consumer expectations and broker fees and commission disclosure. While brokers are legally required to disclose commission, 96% of respondents want clear, jargon-free explanations of both broker fees and commission, delivered in writing and verbally, to fully understand how brokers are compensated.

Despite legal requirements enforced by the FCA to disclose commission, the research found 67% of respondents felt they did not receive a clear, understandable breakdown of fees and commission, with 8% stating both fees and commission were barely mentioned at all. The implication of these statistics shows that even when a breakdown is provided, borrowers often lack guidance on how and why broker fees and commission are calculated.

This lack of clarity in the industry is disconcerting and has clearly brought about tangible consequences surrounding trust. 87% of respondents reported that transparency around client fees and commission strongly influenced their confidence in working with a broker. In fact, 60% of respondents said that both client fees and commission should be explicitly explained in clear, written detail, with nearly half (43%) stating they would only work with a broker who communicates openly and provides a full explanation of how client fees and their commission will be calculated.

Today’s consumers do not see disclosure as a formality. They want clear, jargon-free explanations of both broker fees and commission, consistently delivered in writing and verbally, so they understand exactly how their broker is compensated. Without this clarity, borrowers may question the impartiality of advice, leaving them uncertain during one of the most important financial decisions of their lives.

Generational Differences in Expectations

The research revealed a clear generational pattern in how consumers prefer broker fees and commission to be disclosed. Among younger respondents (aged 25–34), 55% indicated an equal preference for written and verbal explanations of broker fees and commission.

However, as age increases, so too does the preference for documented disclosure. In the 55–64 age group, 72% of respondents preferred written breakdowns of all fees and commission, with only 27% prioritising verbal explanations. This trend highlights that the older the borrower, the stronger the demand for clear, formal documentation to understand exactly how brokers charge and are remunerated.

It is an important distinction to note that the form of disclosure matters. Understanding borrowers’ preferences can help brokerages improve how they communicate commission. Research would indicate that by providing clear, jargon-free written explanations alongside verbal guidance, borrowers can feel significantly more confident and secure in understanding how client fees and commission is earned, ensuring the impartiality of the advice they receive.

Why Broker Client Fees and Commission Clarity Matters

Amidst the current uncertainty within the financial and mortgage advice sector, this latest research highlights a mortgage market where clear, understandable explanations of broker fees and lender commission are fundamental to consumer trust and confidence.

While brokers are legally required to disclose commission, our research shows that borrowers often struggle to understand the fees set by the broker and how they relate to lender commission, leaving them uncertain about the fairness and impartiality of advice. A flagship finding for advisers is that 87% of respondents said clear explanations of broker fees and commission strongly influence their trust in a broker, underscoring just how critical transparency is for consumer confidence from the outset.

While generational differences highlight the need for brokers to adapt their communication styles, the research shows that 96% of respondents want clear, comprehensive explanations of commission in both written and verbal. Most importantly, however, is that across all age groups, the demand is not for disclosure itself – as this is already a mandatory requirement – but for transparency that borrowers can easily understand.

Ultimately, the persistence of asymmetric information around broker fees – where disclosure exists in principle but not always in clear, jargon-free terms – leaves borrowers at a disadvantage. Without easy access to clear information, trust falters, and the sense of fairness and confidence in decision-making is consequently undermined.

With a clear and overwhelming opposition to double dipping and opaque practices, the question remains: is it fair that borrowers continue to make the most important financial decisions in a market where broker fees and commission, though disclosed, are often unclear to the client or poorly explained?

 Download the Full Results – Commission Transparency Survey – August 2025