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FAO Mortgage Brokers/Financial Advisers
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MortgageMamma
Posts: 6,686 Forumite
I'm currently deciding between being Directly Authorised and Appointed Rep for my new company which launches early next year. A close IFA friend of mine is DA and swears by it, to avoid the interference of networks and maximise profits.
What I'm trying to work out is, would I be at a loss being DA as I would lose all the "exclusives" to certain networks, and also I would have to write xxxx amount of business to justify the DA FSA fee's and payment to my compliance advisor (currently £20 an hour) - if any of you have been in both situations - I would appreciate any feedback and assistance.
MM
What I'm trying to work out is, would I be at a loss being DA as I would lose all the "exclusives" to certain networks, and also I would have to write xxxx amount of business to justify the DA FSA fee's and payment to my compliance advisor (currently £20 an hour) - if any of you have been in both situations - I would appreciate any feedback and assistance.
MM
I am a Mortgage Adviser
You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
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Comments
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I guess you would have to consider the business you are currently writing and maybe look at:
1 - Volume
2 - How many of the cases you write rely on exclusives
3 - Out of those exclusives, would you have lost the business for not having access to them?
4 - Work out how many hours you would need the compliance support on the business volumes you are writing
5 - Work out you average commission
If you can honestly answer these then you should be able to get a pretty good idea of how long/many cases it would be to break into a profit by going da. You can then also work out what the difference will be in monetary terms of being DA or AR.I am a Mortgage AdviserYou should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
There is no exact answer to it.
It depends on what you want from your business. Remember though that even as DA you can still use a network to provide complaince support and get access to the exclusive deals they may have.0 -
I don't do enough business to justify being DA , but feel much safer as to my long term viability , as no worries if network goes underAny posts on here are for information and discussion purposes only and shouldn't be seen as (financial) advice.0
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AndrewSmith wrote:There is no exact answer to it.
It depends on what you want from your business. Remember though that even as DA you can still use a network to provide complaince support and get access to the exclusive deals they may have.
Oh right, I didnt realise that, I just thought networks did compliance for their AR's. Better look into the cost of it. One of my main reasons for going DA (an leaving last company) is because my profit margins are becoming tighter and tighter due to the amount of commission that is deducted from me, leaving me working pretty much all day and night 6 days a week.
With that in mind I decided I wanted to deal with less cases but only cases above a certain amount. I wondered if once again reverting to fee charging (well returnable deposits) would make this work better for me.
Being a relatively new self employed advisor, I do not have the advantage of repeat business and lots of remortgages, only new clients and referrals, and so my marketing costs are quite high at present.I am a Mortgage Adviser
You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
I have looked at fees / returnable deposits, - I think the latter is a good idea, if you are getting a lot of enquiries that don't complete ( not really been a problem for me in recent years ) so on the whole feel more comfortable with no fee basis .. although that said on a lot of cases I calculate work Vs commission and provide a degree of rebate- so in reality its more like working on a fee based (with commission rebated) basis anywayAny posts on here are for information and discussion purposes only and shouldn't be seen as (financial) advice.0
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What I find is that a lot of my enquiries are FTB's - some who have not found properties yet (thanks to Mr Smiths lead generation advice), so it can sometimes take a while for my advice to turn into my earnings, I could use this to improve my cash flow and strength of business in short term. I think it would also stop people taking the advice and going direct - as most of my business is non face to face (I concentrate on Wales and Cumbria mostly, but am based in Lancs) very occassionally this happens but most clients are very loyal which is nice.
Whatever I do its important I test it out now and see how it goes before next year - I might go on that cherry site in the next few days and see what some of the brokers I know on there think, my IFA friend said it took him 4 years to find a business model that worked right for him - I don't want to be messing around that long!I am a Mortgage Adviser
You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0
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