MEMA Scope · Assessment

Do mortgage brokers need FCA authorisation?

A firm advises consumers on residential mortgages and arranges them with lenders, usually earning procuration fees from lenders and fees from customers. Review the initial view below and answer a few questions to refine it.

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Initial viewProvisional assessment

Potential regulated activity identified

Advising on and arranging mortgages may require FCA authorisation

Advising on or arranging regulated mortgage contracts needs authorisation, or appointed representative status under a mortgage network or principal.

Route to consider: Direct authorisation (full permission)

Mortgage Advising / Arranging

Why this was flagged

1Advising a consumer on a regulated mortgage contract, or arranging one, is a regulated activity.
2Procuration fees from lenders are typical of regulated mortgage intermediation.

Questions still to resolve

Answer to refine the view. The result updates as you go.

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Do you also advise on or arrange protection or other insurance?
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Do you deal only with buy-to-let mortgages for investors (not consumer buy-to-let) or commercial lending?Regulated mortgage contracts relate to land that the borrower occupies as a home. Consumer buy-to-let is a separate regime.
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Do you operate under a mortgage network or principal that takes regulatory responsibility for you?

Regulatory basis to examine

RAO Art.25A Arranging regulated mortgage contractsArranging regulated mortgage contracts RAO Art.53A Advising on regulated mortgage contractsAdvising on regulated mortgage contracts PERG 4 Guidance on regulated activities connected with mortgagesPERG 4: guidance on mortgage activities MCOB 4 Advising and selling standardsAdvising and selling standards

Your next steps

1Decide between direct authorisation and appointed representative status
2Build the advised sales process and disclosure required by MCOB
3Confirm adviser qualifications and competence arrangements
4Check whether any of your products are consumer buy-to-let or home reversion, which sit in other regimes

Where applications for this model most often fall short

A documented advice process with sample file reviews
Adviser competence and supervision records
Lender agreements and fee disclosure

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This is an initial indication from published FCA material, not an FCA determination or legal advice.

MEMA Compass

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How Compass helps

Ask about an activity, exclusion or FCA requirement. Answers come only from vetted profiles, FCA Handbook and legislation extracts and MEMA guidance, and every answer cites its source.

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Continue with a more detailed readiness assessment

If authorisation is required, check the firm’s governance, policies, resources and application preparedness.

Will the FCA Authorise Us?

MEMA Scope gives an initial view from published FCA material. It is not legal advice or an FCA determination. Automatic matching and typed questions use AI only to choose a profile and to answer from vetted guidance; the assessment itself is never written by AI.

About this business model

A firm advises consumers on residential mortgages and arranges them with lenders, usually earning procuration fees from lenders and fees from customers.

Advising on or arranging regulated mortgage contracts needs authorisation, or appointed representative status under a mortgage network or principal.

This page gives an initial view from published FCA and legislation sources. It is not an FCA determination or legal advice. Not your business model? Describe your business in MEMA Scope.

Mortgage broker: frequently asked questions

Do mortgage brokers need FCA authorisation?

Advising on and arranging regulated mortgage contracts are regulated activities under RAO Arts.53A and 25A. Mortgage brokers need to be authorised or act as appointed representatives of an authorised firm.

Is buy-to-let mortgage advice regulated?

Regulated mortgage contracts relate to land used as a home. Consumer buy-to-let mortgages are a separate regime, and other buy-to-let lending may be outside; the detail depends on the borrower and the property.

What could change the answer for mortgage brokers?

Advising on or arranging regulated mortgage contracts needs authorisation, or appointed representative status under a mortgage network or principal. It can change depending on the answers to questions such as: Do you also advise on or arrange protection or other insurance? Do you deal only with buy-to-let mortgages for investors (not consumer buy-to-let) or commercial lending? Do you operate under a mortgage network or principal that takes regulatory responsibility for you?

Which FCA rules should mortgage brokers look at first?

Start with: Arranging regulated mortgage contracts; Advising on regulated mortgage contracts; PERG 4: guidance on mortgage activities; Advising and selling standards. This is an initial view from published FCA material, not an FCA determination.

What are the first steps for mortgage brokers?

Decide between direct authorisation and appointed representative status. Build the advised sales process and disclosure required by MCOB. Confirm adviser qualifications and competence arrangements. Check whether any of your products are consumer buy-to-let or home reversion, which sit in other regimes.

Businesses we check

MEMA Scope covers 32 common business models. Each page explains whether that kind of business may need FCA authorisation, the rules to look at and the routes to consider.