Definition · Glossary
Broker
Personal LoansLoan Types & Lenders
In plain English
A broker searches across multiple lenders on your behalf and earns a fee or commission if you take out a product through them. Mortgage brokers, loan brokers and insurance brokers are common examples.
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Example
A loan broker may compare rates from 20 lenders and present you with the options, rather than you applying to each individually.
Don't get caught out
Common misunderstandings
- Not all brokers are impartial — some only work with a limited panel of lenders.
- Brokers must be FCA-authorised to offer credit broking services.