UK mortgage borrowers are demanding far greater transparency from brokers on how they are paid, according to new research from Boon Brokers.

The study, based on more than 1,000 respondents across England, found that while brokers are legally obliged under Financial Conduct Authority rules to disclose commission and fees, many borrowers remain confused about how these charges work in practice.

An overwhelming 96% of those surveyed said they wanted both written and verbal explanations of commission and fees before proceeding with an application. Two-thirds admitted they did not fully understand how brokers earn their income, despite regulatory disclosures, and 67% said they had not received a full written breakdown of commission earned.

Confusion was most acute around the interaction between client fees and lender commission. The research found that 85% of respondents did not believe brokers should both charge a client fee and also receive commission, a practice often referred to as “double dipping”. A quarter of borrowers said commission was either barely mentioned or not referred to at all.

Gerard Boon, managing director of Boon Brokers, which does not charge a fee from applicants, said: “Mortgage brokers are required by FCA regulations to provide clients with clear breakdowns of their commission. However, what is often missing is a jargon-free explanation that helps borrowers fully understand both the broker fees and commission that they earn.

“Providing transparent, easy-to-understand information is essential to ensure clients can make informed decisions and maintain trust in their broker.”

CONFIDENCE & TRUST

The findings underline the link between transparency and consumer confidence. Some 87% of respondents said openness about fees and commission strongly influenced their trust in a broker, while nearly half of those aged 25–34 said they would only work with advisers who were fully transparent about how they are paid.

Preferences for disclosure also varied by age. Borrowers aged 55–64 expressed the strongest desire for written documentation, with 72% favouring detailed breakdowns over verbal explanations. By contrast, younger borrowers were more evenly split, with 55% of those aged 25–34 preferring a mix of written and verbal explanations.

The research suggests widespread misconceptions about broker remuneration. Almost 70% of respondents were unsure that lender commission varies by case, while a minority incorrectly assumed that all lenders pay the same amount or that commission is standardised to prevent bias.

Boon Brokers said the results highlight a wider problem in the mortgage market: disclosure may exist in principle, but if it is delivered in opaque or overly technical language, borrowers are left uncertain about the fairness of the advice they are receiving.