cefa/cemap advise please.

arkie

Learn the trade fairytale 1 , you live about 10 miles away from me ( im in Halifax) and in Bradford they are 2 major banks/buildings society (yorkshire building society/abbey) go onto their website and look for the vacancies. You will get more than 13k with these 2 companies , more like 18k plus bonuses and you could get good sales training. Does your current employer have such roles?
The broker industry is going through a rough time and only the financially fit and fee charging brokers will be left at the end. ( IMO Commission from lenders is on its way out as brokers will get paid a renewal commission based on the conduct of the mortgage account, this is how brokers ae paid 'down under')
Most brokerages will want you to be self employed and take a percentage of your commission to cover their costs, they might provide you with leads but the majority of these will come from price comparison websites where you will deal with vague enquires or people wanting 100% mortgages.

Conrad

fairytale1 wrote: »

If i do succeed in my career i hope i will advise well on the risks, rather than just "trying to get a sale"

quote]


I don't mean to be discurteous, but this is a neave view, and one with which I came to the indsutry, but that was soon knocked out of me.

Here is a summary of the new enquiries I had last week;

1) Remortgage of a shared equity flat. Mrs about to go on maternity with just 6 weeks full pay then a big drop. Mr recently went self employed. Cant do an honest remortgage - it will not fit, even though they are very sensible, with no other debt and can easily afford thier mortgage.

2) Remortgage, but Mrs left work to have a family and Mr is self employed and his Accountant is paid lots of money to keep the earnings as low as possible. Cant go self cert as rates are too high. Again this is not an increase in mortgage size, but there is nowt can be done.

3) Remortgage to repay unsecured debt. Current mortgage and debt costs to be halved by remortgageing, but Mr is self employed and earnings again kept artifically low by Accountant. CAN EASILY AFFORD THIS afterall debt costs will halve. Self cert rates some £150 per month more than non self cert. Clients WILL NOT go the self cert route - they wont pay the extra so they want a bropker to do it FAST TRACK, with a prime lender that tends not to request income proof. PROBLEM - if they cause the lender a loss after being repo'd, YOU AS THE ADVISER could be held financially liable.
Will you take that risk?

4) Self Cert purchase deal. Clients cant proove income by way of Accountants or Tax returns, but Bank statements show some income but not enough as much of thier income is cash which they immediately spend (so dont bother to Bank). Do you want to take the risk on that? Again if it goes bad you could find yourself at the end of Civil Proceedings to recover losses.

5) Cleints want to let current residential home, but existing lender will not allow, and clients cannot change to a buy to let remortgage, so they will just have to let it and take a chance.
They want you to arrange a new mortgage to purchase thier new main residence.

So they let out the current home but cant alter the buildings insurance to reflect the fact its now rented, or the insurers would write to the current lender!
So many implication here.


Very few straight forward clients need a broker. They can simply look on money supermarket and quickly work out the best deal. They certainly wont want to pay you a fee.

I agree with the poster that said get a proper job. This industry is the last place I want my children to enter.

Conrad

thejoose wrote: »

fairytale_1 don't listen to the boo boys who tell you to leave the industry. I'm doing just fine and in fact I wish I had more hours in the day to get all the work done.

Blimey, lending figures are 50% down, 95% of sub prime lenders have shut shop, house purchasing is just a fringe activity, estate agents are going out of business, and you are doing fine?

How do you define doing fine?

Before you answer that consider this;
Each time you arrange a fast track or self cert mortgage you are at potential risk of civil litigation to recover losses incurred by a lender.
This is part of the T & Cs brokers agree to with each lender / network.
Your PI cover will not be any protection against this.

Therefore 'doing fine' in the context of this risk, shouldm earn you are earning over £100k.

fairytale1

Conrad wrote: »

fairytale1 wrote: »

If i do succeed in my career i hope i will advise well on the risks, rather than just "trying to get a sale"

quote]


I don't mean to be discurteous, but this is a neave view, and one with which I came to the indsutry, but that was soon knocked out of me.

Here is a summary of the new enquiries I had last week;

1) Remortgage of a shared equity flat. Mrs about to go on maternity with just 6 weeks full pay then a big drop. Mr recently went self employed. Cant do an honest remortgage - it will not fit, even though they are very sensible, with no other debt and can easily afford thier mortgage.

2) Remortgage, but Mrs left work to have a family and Mr is self employed and his Accountant is paid lots of money to keep the earnings as low as possible. Cant go self cert as rates are too high. Again this is not an increase in mortgage size, but there is nowt can be done.

3) Remortgage to repay unsecured debt. Current mortgage and debt costs to be halved by remortgageing, but Mr is self employed and earnings again kept artifically low by Accountant. CAN EASILY AFFORD THIS afterall debt costs will halve. Self cert rates some £150 per month more than non self cert. Clients WILL NOT go the self cert route - they wont pay the extra so they want a bropker to do it FAST TRACK, with a prime lender that tends not to request income proof. PROBLEM - if they cause the lender a loss after being repo'd, YOU AS THE ADVISER could be held financially liable.
Will you take that risk?

4) Self Cert purchase deal. Clients cant proove income by way of Accountants or Tax returns, but Bank statements show some income but not enough as much of thier income is cash which they immediately spend (so dont bother to Bank). Do you want to take the risk on that? Again if it goes bad you could find yourself at the end of Civil Proceedings to recover losses.

5) Cleints want to let current residential home, but existing lender will not allow, and clients cannot change to a buy to let remortgage, so they will just have to let it and take a chance.
They want you to arrange a new mortgage to purchase thier new main residence.

So they let out the current home but cant alter the buildings insurance to reflect the fact its now rented, or the insurers would write to the current lender!
So many implication here.


Very few straight forward clients need a broker. They can simply look on money supermarket and quickly work out the best deal. They certainly wont want to pay you a fee.

I agree with the poster that said get a proper job. This industry is the last place I want my children to enter.

I am doing my cefa exams now as the mortgage market is slow and I’m thinking that in these times people need financial advice more than ever. I have my CeMap qualification, but I know from my own experience as an underwriter the problems that arise with mortgage applications. I don't think for a minuet these times are easy for anyone in the industry.

I just thought once I pass my cefa it may open more doors, as I haven't got anywhere just passing my CeMap, and I don't think I will, with the state of the current market.

Maybe I am been naive but I have worked far too hard to quit. I thought if I studied all the ifs exams this year. I may be able to get a better salary when the market picks up. Especially if I can give both mortgage advice & financial advice.

I will have my cefa by the end of this year. Then I want to do my
Certificate in supervising in a regulated environment,
Certificate equity release
Certificate in regulated customer care
Certificate in regulated complaints handling
Certificate of regulated general insurance
Certificate in commercial mortgage
Advanced CeMap

I have enjoyed doing my CeMap exams and am enjoying doing my cefa. It would be nice to think that my hard work will pay off one day.
I love working with mortgages and finance. As I have such a boring job at the moment the studying is helping my to think that I am doing something positive with my career.


I just don’t want to do all this if at the end of it I’m still stuck in a 13k pa admin job. With nothing to show for it.

Thank you for your comment, I think i am just scared to admit i have made the wrong career decision, Now i have gone too far to turn back.

fairytale1

arkie wrote: »

Learn the trade fairytale 1 , you live about 10 miles away from me ( im in Halifax) and in Bradford they are 2 major banks/buildings society (yorkshire building society/abbey) go onto their website and look for the vacancies. You will get more than 13k with these 2 companies , more like 18k plus bonuses and you could get good sales training. Does your current employer have such roles?
The broker industry is going through a rough time and only the financially fit and fee charging brokers will be left at the end. ( IMO Commission from lenders is on its way out as brokers will get paid a renewal commission based on the conduct of the mortgage account, this is how brokers ae paid 'down under')
Most brokerages will want you to be self employed and take a percentage of your commission to cover their costs, they might provide you with leads but the majority of these will come from price comparison websites where you will deal with vague enquires or people wanting 100% mortgages.

I have been moved to doing isa transfers at work as our lending is now limited. The only jobs going are debt collection (call centre). I have applied at other banks, but they don’t seem to be interested in my CeMap qualification. They all want target based sales experience. I don't really know what I’m going to do upon passing the rest of my exams. I have asked if I can work with our branch Mortgage Advisor for a few weeks so I can at least see the work involved. But don't think they are going to allow it. I think it would of been different if work had paid for the exams, but I wanted to keep my options open and didn't want to be tied to them so I paid for it myself.

Ian_Griffiths_Halifax

fairytale1 wrote: »

I have been moved to doing isa transfers at work as our lending is now limited. The only jobs going are debt collection (call centre). I have applied at other banks, but they don’t seem to be interested in my CeMap qualification. They all want target based sales experience. I don't really know what I’m going to do upon passing the rest of my exams. I have asked if I can work with our branch Mortgage Advisor for a few weeks so I can at least see the work involved. But don't think they are going to allow it. I think it would of been different if work had paid for the exams, but I wanted to keep my options open and didn't want to be tied to them so I paid for it myself.

An indication to other readers that Banks SELL mortgages.

koexelek

Ian_Griffiths_Halifax wrote: »

An indication to other readers that Banks SELL mortgages.

... and cross sell everything they can on the back of them

fairytale1

Ian_Griffiths_Halifax wrote: »

You redeemed your self there. In your first post you said

Anybody in this industry who looks at arranging a mortgage as a Sales job should work for a bank and not as a broker. A brokers role is to look after the client.

There are lots of companies going to the wall just now and not all of them are bad, they may just not have the client base to survive.

I personally am looking for more staff on the mortgage and life assurance side but can't find any good advisers. They have either worked for bank's or estate agents. One guy even thought he was a Mortgage Adviser and he'd only ever worked in an incoming call centre for Abbey :rotfl:

Get qualified then approach an Independent Broker who has the time to teach you the ropes of how to give good advice. A lot of the job is down to experience and personality but look after your clients and you'll be ok.

Do you think a broker would be interested in teaching me the ropes with no experiance?

The telephone interviews has knocked my confidance a bit. I wouldn't know how to approach a broker....

Also would working for a bank put a broker off?

thejoose

Conrad, there is no need to assume thast just because I'm doing fine that I have to therefore being doing something illegal.

There are opportunities in the industry to give first class advice and treat customers fairly. It is is this and good marketing that gets results even in difficult times.

I'm simply responsing to some of the comments suggesting that fairytale either pays for their own cefa or gets out of the industry and get a "proper job".

I totally disagree and whilst many firms and individuals are struggling, it is not true for all. This individual could well find a performing firm that is recruiting and have their exams and training paid for them while they grow into the role of advising.

thejoose

Furthermore, not all brokers will require individuals to be self employed. Research the industry and there are great opportunities out there for anyone up for hard work and the rewards that come with it.