If we assume that you pay your mortgage broker’s fees separately, which means they’re not added to your mortgage loan, the interest rate and APR will be the same.
If you have broker’s fees added to your mortgage loan, the situation becomes a little more complex. In this instance, we will assume that total mortgage costs of £2000 on a £100,000 mortgage, with a headline interest rate of 5%.
Mortgage loan: £100,000
Total mortgage: £102,000
Annual interest: 5% x £102,000 = £5100
APR: 100 x (£5100/£100,000) = 5.1%
So while the headline mortgage interest rate is 5%, the annual percentage rate (APR) is actually 5.1% after taking into account fees.