Independent Mortgage Advisor vs Bank: Which Is Right for You?

When it comes to getting a mortgage, one of the biggest decisions you’ll face is whether to go through an independent mortgage advisor or directly to a bank. Both options can secure you a mortgage deal, but the way they work and the value they provide can be very different.

In this guide, we’ll break down the key differences, explore the pros and cons of each, and help you decide which option might be the best fit for your situation.

What Is an Independent Mortgage Advisor?

An independent mortgage advisor (sometimes called a mortgage broker) is a qualified professional who helps you find and apply for a mortgage. Unlike banks, they’re not tied to one lender – they can access products from a wide range of lenders across the market.

Independent advisors are regulated by the Financial Conduct Authority (FCA), meaning they must give advice that is suitable for your circumstances and in your best interest.

In short: their role is to search the market for you, explain the options, and guide you through the application process.

What Is a Bank Mortgage Advisor?

A bank mortgage advisor is someone employed directly by a bank or building society. They can only offer you mortgages from their employer’s product range.

While they may provide in-depth knowledge of their own bank’s products, they won’t be able to recommend mortgages from other lenders – even if those might be cheaper or better suited to you.

This can make banks a more limited option compared with independent advisors, but they do have some advantages too, which we’ll explore shortly.

Key Differences Between Independent Mortgage Advisors and Banks

When comparing an independent mortgage advisor with a bank mortgage advisor, here are the main distinctions you need to be aware of:

Access to products

An independent mortgage advisor can search the whole market or a wide panel of lenders, whereas a bank mortgage advisor can only offer their own bank’s mortgage products.

Regulation

Both are regulated by the Financial Conduct Authority (FCA), but an independent advisor must act in your best interest, while a bank advisor is tied to their employer’s product range.

Range of advice

Independent advisors give impartial, tailored advice across multiple lenders. Bank advisors can only discuss and recommend their own mortgages.

Fees

Independent advisors may charge a fee (or be paid by commission), while bank advice is usually free. However, free advice from a bank may mean missing out on better deals elsewhere.

Speed and support

Independent advisors handle much of the paperwork, chase lenders, and streamline the process. A bank advisor supports your application but only within their own institution.

Pros of Using an Independent Mortgage Advisor

Access to the whole market

You’ll see mortgage deals from dozens of lenders, not just one. This increases the chance of finding the most competitive interest rate and terms.

Tailored advice

Advisors consider your full financial situation, from income and credit history to deposit size and future goals.

Support with paperwork

An advisor helps complete applications, liaises with lenders, and speeds up the process – reducing stress for you.

Specialist mortgages

If you’re self-employed, have poor credit, or need a buy-to-let mortgage, brokers often know which lenders are most likely to accept you.

Time-saving

Instead of approaching each bank individually, you get everything compared in one place.

Cons of Using an Independent Mortgage Advisor

Potential fees: Some charge a flat fee or a percentage of the loan, though many are paid by the lender. Always check upfront.

Quality varies: Not all advisors are equally experienced. Look for FCA-regulated, whole-of-market brokers for the best service.

Pros of Going Directly to a Bank

Familiarity

If you already bank with them, it may feel simpler to arrange a mortgage where you already hold accounts.

Exclusive deals

Some banks offer special rates or perks to existing customers, such as fee-free mortgages or cashback.

No broker fee

You won’t pay an intermediary, as the bank advisor’s cost is covered by the bank.

Cons of Going Directly to a Bank

Limited choice: You only see that bank’s deals, which might not be the most competitive on the market.

Less flexibility: If your circumstances are unusual (self-employed, adverse credit, complex income), banks may be less willing to lend.

More legwork for you: You’ll need to shop around multiple banks yourself if you want to compare deals properly.

Which Option Is Best for You?

The right choice depends on your circumstances:

First-time buyers often benefit from independent advice to make sure they get the best deal available.

Borrowers with complex income (freelancers, contractors, self-employed) usually find brokers more effective in finding flexible lenders.

Loyal bank customers may find it convenient to use their own bank, particularly if they’re offered exclusive deals.

Those with poor credit may have more luck with a broker who knows which lenders are open to less-than-perfect applications.

FAQs About Independent Mortgage Advisors vs Banks

Do mortgage brokers get better rates than banks?

Often yes. Because brokers have access to more lenders, they can find competitive deals that a single bank can’t offer.

Do I have to pay for an independent mortgage advisor?

Sometimes. Many are paid by lenders via commission, but some charge fees. Always ask about costs upfront.

Is going to a bank quicker?

Not necessarily. While banks only process their own applications, a broker may speed things up by handling the admin for you.

Final Thoughts

Choosing between an independent mortgage advisor and a bank comes down to your priorities.

If you want choice, tailored advice, and help with the process, an independent mortgage advisor is usually the better option.

If you value simplicity and loyalty to your bank, and you’re happy with their offers, going directly to a bank may work for you.

At APE Finance we specialise in independent mortgage advice tailored to your needs. Whether you’re a first-time buyer, looking to remortgage, or need a specialist solution, we’ll compare the market and guide you every step of the way.