Secured loan broker fees commonly range from around £1,000 to £3,000, or a percentage of the loan, often 2% to 10%. On a £20,000 secured loan, also called a homeowner loan or second charge mortgage, that means anywhere from a few hundred pounds to £2,000 or more. Lender arrangement fees commonly add up to around £1,000 on top. A fee should be disclosed in writing before you commit, and any fee above 10% of the loan deserves hard questions.
- Broker fees on secured loans are commonly a flat sum or a percentage of the loan, and are often added to the borrowing.
- The FCA's March 2026 review of the second charge market criticised high and unclear intermediary fees.
- Lender fees, valuation fees and your mortgage lender's consent fee are separate from the broker's fee.
- Every fee added to the loan is included in the APRC, which is why the APRC is higher than the interest rate.
- Brokers Equiclear introduces disclose their fees before you commit, and checking your options does not affect your credit score.
What fees are charged on a secured loan?
A secured loan usually carries several separate charges, and it helps to know which is which. The broker fee is what the intermediary charges for arranging the loan, commonly either a flat amount, often £1,000 to £3,000, or a percentage of the loan, commonly 2% to 10%, with some firms charging more. It is often added to the loan rather than paid up front, so you pay interest on it for the whole term.
The lender's own fees come next. Many lenders charge an arrangement or completion fee, commonly from nothing up to around £1,000, and some add a legal or administration fee. A valuation fee may apply if a physical inspection is needed, though automated valuations are often free. Your existing mortgage lender may charge a consent fee for agreeing to the second charge, commonly £50 to £300.
Brokers may also receive commission from the lender, typically a percentage of the loan, on top of what they charge you, and it must be disclosed. The FCA's March 2026 review of the second charge market found that in some cases intermediary fees were high relative to the loan and not clearly explained until late in the process. Our about page explains our own position as an introducer.
How do broker fees affect the APRC and total cost?
The APRC, or annual percentage rate of charge, must appear on every secured loan illustration. Unlike the interest rate, it includes fees added to the loan, which is why it is often noticeably higher than the headline rate and why it is the right number for comparing offers. The example below shows the effect of a £1,500 broker fee added to the loan.
Illustrative rates: The rates in this example are fictional and used only to show how the numbers work. They are not an offer. Your actual rate may be lower or higher and will depend on your circumstances, your property and the lender. Consolidating debt over a longer term can mean you pay more interest overall, even if your monthly payment falls.
| Position | Monthly | Total repayable |
|---|---|---|
| Now: £12,000 on cards at 24.9% (minimum payments) plus an £8,000 personal loan at 12.9% over 5 years | £532 | Depends on how long the cards take to clear |
| New: £20,000 secured loan at 7.9% over 15 years, no fees | £190 | £34,196 |
| Same loan with a £1,500 broker fee added: £21,500 at 7.9% over 15 years | £204 | £36,761 |
The fee is £1,500, but borrowed over 15 years it costs £2,565 in extra repayments, and the APRC rises to roughly 9.5% against about 8.2% with no fees at all. That gap is the fee's true price. A qualified adviser should show you both figures and explain how much of the difference is their own charge.
How much is too much for a secured loan broker fee?
There is no legal cap, but the FCA's Consumer Duty requires fair value, and its March 2026 review made clear it expects fees to be justified by the work involved and explained early. As a practical guide, a fee above 10% of the loan, or above around £3,000 on a straightforward case, is high by market standards and you should ask what you are getting for it. A fee that looks modest on £50,000 can be disproportionate on £15,000.
Warning signs include a fee that only appears on the offer document, a fee that changes without clear reason, pressure to sign before the seven-day reflection period ends, and a broker who cannot explain how the fee compares with other firms. Some brokers charge nothing to the borrower and are paid only by the lender; our guide on secured loans with no broker fee explains how that model works and what to check.
Fees are not the only cost that matters. A broker charging £1,500 who finds you a lower rate may cost less overall than one charging £500 who does not. The right comparison is the total repayable over the whole term, which you should ask every broker to put in writing.
What questions should I ask a broker about fees?
Ask these before you agree to anything:
- What is your fee, in pounds, and when is it payable?
- Is the fee added to the loan, and if so what does it cost over the full term?
- Do you receive commission from the lender, and how much?
- What is the lender's arrangement fee, and are there valuation, legal or consent fees on top?
- What is the APRC, and what would it be with no fees?
- Is any part of the fee refundable if the loan does not complete?
- Have you compared this against a remortgage, and what did that cost?
Brokers Equiclear introduces you to are FCA authorised and disclose their fees before you commit, so you can see the full cost of a recommendation before deciding. Checking your options will not affect your credit score. Any secured loan is secured on your home, which may be repossessed if you do not keep up the repayments, and free, impartial advice from MoneyHelper, StepChange or Citizens Advice is available if you want to talk through whether consolidating is right for you.
Paying a broker fee makes little sense if the loan is small, since even a modest fee can be a large share of the borrowing, or if your circumstances are simple enough that a fee-free route would serve you just as well. It is also a poor deal if the fee is being used to make an expensive loan look affordable by stretching the term. If any broker is reluctant to put their fee in writing early, walk away; and if the reason you are borrowing is that your finances are already under strain, free debt advice may save you both the fee and the loan.
Worried about debt? Get free advice first
If you're struggling, it's worth speaking to a free, impartial debt advice service before you borrow more. They don't sell anything and won't judge your situation.
- MoneyHelper: Free, impartial debt advice backed by government
- StepChange: The UK's largest free debt charity
- Citizens Advice: Free, confidential advice on debt and money
Checking your options with Equiclear will not affect your credit score.
Frequently asked questions
Do all secured loan brokers charge a fee?
No. Many charge the borrower a fee, either flat or as a percentage of the loan, but some are paid only by the lender through commission and charge you nothing directly. Either way, the broker must tell you how they are paid before you proceed.
Is a 10% broker fee on a secured loan normal?
It is at the high end of what the market commonly charges. Fees of that size exist, particularly on smaller or complex loans, but attracted criticism in the FCA's March 2026 review. Ask what work justifies it, and compare the total cost including the fee against other brokers.
Can I pay the broker fee up front instead of adding it to the loan?
Often, yes. Paying up front avoids interest on the fee for the whole term, which on a 15-year loan can be a significant saving. Ask the broker whether this is possible and how it changes the APRC. If you cannot pay up front, at least know what adding it will cost.
Does the broker fee count towards the APRC?
Yes, if it is added to the loan or is a condition of getting it. The APRC includes the interest rate plus the fees that are part of the agreement, spread over the term, which is why it is usually higher than the interest rate and better for comparing offers.
What did the FCA say about second charge broker fees?
In its March 2026 review of the second charge mortgage market the FCA said some intermediary fees were high relative to the loan and not clearly explained early enough. It reminded firms that the Consumer Duty requires fair value and clear communication, and signalled it would keep looking at fee practices.
Do lenders charge fees on secured loans as well?
Commonly, yes. Many lenders charge an arrangement or completion fee, often up to around £1,000, and may add legal or valuation fees depending on the case. Your existing mortgage lender may also charge a consent fee. All of these should appear on the illustration before you decide.