Bridging Loan Broker Fees: What Brokers Charge and How Fee-Free Works
Bridging loan broker fees in the UK typically run from 0.5% to 1.5% of the loan amount, or a fixed £995 to £2,995 on smaller cases, charged on top of the commission the broker receives from the lender. Some brokers, FD Commercial among them, charge no broker fee at all on most cases and are paid by lender commission alone. This guide explains what brokers charge, how fee-free broking actually works, and what to check whichever route you take.
What do bridging loan brokers charge in 2026?
The UK market runs three fee models. Percentage-fee brokers charge 0.5% to 1.5% of the gross loan, payable on completion or partly on application. Fixed-fee brokers charge a set amount, commonly £995 to £2,995, regardless of loan size, which works out expensive on small loans and cheap on large ones. Fee-free brokers charge the borrower nothing and take only the lender's commission.
| Fee model | Typical cost | On a £500,000 bridge | On a £1,500,000 bridge |
|---|---|---|---|
| Percentage fee | 0.5%-1.5% of the loan | £2,500-£7,500 | £7,500-£22,500 |
| Fixed fee | £995-£2,995 | £995-£2,995 | £995-£2,995 |
| Fee-free (lender-paid) | £0 to the borrower | £0 | £0 |
One thing worth saying plainly: almost every broker in the market receives lender commission whether or not they also charge you a fee. A broker charging 1% on top of a 0.75% procuration fee is being paid 1.75% on your loan. That is not wrong in itself, but you should know it before you sign a fee agreement, and most borrowers never ask.
How can a bridging loan broker be fee-free?
Bridging lenders pay brokers a procuration fee, typically 0.5% to 1% of the loan, for introducing and packaging completed cases. It is how the intermediary channel works across the whole mortgage market. A fee-free broker simply takes that commission as full payment rather than charging the borrower on top.
Two questions follow, and both have clean answers. Does the commission make the loan more expensive? No: lender pricing is set by the risk of the deal, the LTV, the property, and the exit, and the same rate card applies whether the case comes from a fee-charging broker, a fee-free broker, or, where the lender accepts them, a direct applicant. Does commission bias the broker's recommendation? It is a fair challenge, which is why the commission is disclosed to you before you proceed, and why on FD Commercial cases the recommendation is written down with the reasoning: the lender whose criteria fit the case is also, almost always, the one that completes fastest, and speed is usually why the client is there at all.
FD Commercial charges no broker fee on most bridging and commercial cases. A fee may only apply where the recommended lender pays no commission, and where that happens the amount is confirmed before you proceed.
Is it cheaper to go direct to a bridging lender?
Usually not, and often the opposite. Three reasons.
Lenders do not discount for direct borrowers. There is no direct-only rate card in bridging. The price is the price, and a broker placing a contested case will often complete below the published card, because lenders sharpen pricing when they know the deal has competing terms.
Much of the market is intermediary-only. Many specialist bridging lenders take no direct applications at all. A direct borrower is choosing from the subset of the market that advertises to the public, which is not where the sharpest specialist pricing usually sits.
The real cost of going direct is a failed deal. Commit to one lender, and if the valuation, the legal pack, or the underwriter's view of your exit goes against you at week three, you start again with the deadline unchanged. On auction cases that mistake costs the deposit. The cases that reach us after a direct application has stalled are consistently the most expensive ones to rescue, because the time has already been spent.
Worked example: fee vs no fee on a £750,000 bridge
Broker A: 1% broker fee (£7,500) + lender at 0.72% per month.
Broker B (fee-free): £0 broker fee + same lender tier at 0.72% per month.
Direct: £0 broker fee + the one lender the borrower found at 0.80% per month.
Over 9 months: Broker A total interest £48,600 plus £7,500 fee = £56,100. Broker B £48,600. Direct £54,000. The fee-free broker route is cheapest, and the direct route costs £5,400 more than it, despite paying no broker anything.
What costs still apply with a fee-free broker?
Fee-free describes the broker's charge, not the loan. On any bridging loan, whoever arranges it, you should expect: the lender's arrangement fee, typically 1% to 2% of the gross loan; a valuation fee paid upfront; the lender's legal costs plus your own solicitor; and, with some lenders, an exit or redemption administration fee. Rolled-up or retained interest structures also affect the total repaid. Our bridging loan costs and fees guide breaks down every line, and the bridging loan calculator models the total cost of your own figures.
The honest test of any broker, fee-free or otherwise, is whether you receive a full cost illustration, every fee, total interest over your planned term, and the redemption figure, before you are asked to commit to anything. If the numbers arrive piecemeal, walk away.
How do you judge a broker beyond the fee?
The fee model is the wrong basis for choosing a broker. What matters is whether they can place your case well: genuine market access rather than a small fixed panel, evidence of completing cases like yours at your loan size, transparency about commission, and a straight answer when a deal does not stack. A fee-charging broker who puts your case with the wrong lender costs you far more than their fee. A fee-free broker with weak lender access saves you nothing if the deal fails.
Our guide to choosing a regulated bridging loan broker sets out the questions to ask and the red flags to avoid, and applies just as well to unregulated cases.
Bridging loan broker fees: frequently asked questions
What are typical bridging loan broker fees in the UK in 2026?
Most brokers charge 0.5% to 1.5% of the loan, or a fixed £995 to £2,995 on smaller cases, on top of the lender commission they receive. On a £500,000 bridge a 1% fee is £5,000. Fee-free brokers, including FD Commercial on most cases, charge the borrower nothing.
How can a broker be fee-free?
Lenders pay brokers a procuration fee of typically 0.5% to 1% for introduced, packaged cases. A fee-free broker takes only that commission rather than charging you on top. It is disclosed to you and does not change the lender's pricing, which is set by the deal's risk.
Is going direct to a lender cheaper than using a broker?
Usually not. Lenders do not discount for direct applicants, much of the specialist market is intermediary-only, and brokers often complete below the published rate card by creating competition. With a fee-free broker there is no fee saving to weigh against those disadvantages.
What costs still apply with a fee-free broker?
The loan costs themselves: lender arrangement fee of 1% to 2%, valuation, both sets of legal fees, and any exit fee. Fee-free removes the broker's charge, not the lender's. Always get a full cost illustration before committing.
Do brokers get better rates than direct borrowers?
Often yes. Parts of the specialist market only lend through intermediaries, and around half the deals we place complete below the lender's published card because the case went to the lender whose appetite matched it. Direct borrowers see a narrower market at list price.
When does FD Commercial charge a fee?
Only where the recommended lender pays no commission, and the amount is confirmed before you proceed. On most bridging and commercial cases there is no broker fee at all; we are paid disclosed commission by the lender.
How is broker commission disclosed?
You are told the broker will receive commission from the lender and how it is calculated, normally a fixed percentage of the amount borrowed. Disclosure is stricter on regulated bridging under FCA rules. The commission does not increase what you pay under your loan agreement.
Are fee-free brokers worse than fee-charging ones?
No. The fee model tells you how a broker is paid, not how good they are. Judge market access, transparency, and completed cases like yours. A badly placed case costs far more than any broker fee ever would.
Fee levels and lender commission arrangements described are indicative of the UK market in 2026 and vary by broker and lender. Full costs on any FD Commercial case are disclosed before you proceed. Your property may be repossessed if you do not keep up repayments on a mortgage or other loan secured against it. FD Commercial arranges bridging loans from £250,000.
FD Commercial arranges bridging loans from £250,000 with no broker fee on most cases. We are paid by the lender, the commission is disclosed, and you see the full cost of the loan before you commit to anything.
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