Mortgage Adviser - HELP PLEASE

andrewg1

Hi,

I am considering a career change to become a mortgage adviser so I would appreciate any advice, hints or tips that any of your mortgage boffins can offer.

I know that I need first to pass CeMap and then get either FSA authorisation or work under the umbrella of an organisation like Mortgage Intelligence who look after compliance issues etc. However, before I register for the CeMap I have a few questions:

(a) There seem to be hundreds of people offering money to borrowers. Is there really need for yet another mortgage adviser? What segments of the mortgage market are currently under-served by intermediaries?

(b) Is there a rosy future for mortgage advisers or does the internet, where borrowers can find and assess mortgages for themselves, pose a terminal threat for the intermediary?

(c) What are the potential sources of income for a mortage adviser other than the origination fee from the lender/fee from borrower?

(d) Is there potential, with endeavour, clever thinking and some luck, to make lots of money as a mortgage adviser? The reason I ask this is that I am considering another change-of-career opportunity which is potentially lucrative (though less interesting)

(e) FINALLY, would you advise someone close to seek a career as a mortgage adviser?

Again, any suggestions offered will be greatly appreciated!!!

HelpWhereIcan

andrewg1 wrote:

Inow that I need first to pass CeMap and then get either FSA authorisation or work under the umbrella of an organisation like Mortgage Intelligence who look after compliance issues etc. However, before I register for the CeMap I have a few questions:

You will probably also find that, for a period of time (a couple of years I would have thought), you will need to work as an adviser within an established practice. I cannot see many networks being willing to authorise a firm whose only adviser/principal is new to the industry. Could be wrong though.

On top of that, there is a lot more knowledge to this job than just passing CeMap and being able to use Trigold/Mortgage Brain will give you. There are subtleties in lenders' processes, criteria and product features that can only be learned 'on the job' under (preferably) a very good adviser. (Cheers DW :beer: ). Otherwise you will find it a real struggle to compete with small local brokers let alone some of the more aggresively marketed nationals. You will very rarely be the only adviser someone speaks to, and a lack of experience/market knowledge can be shown up quite easily if you don't have the back up.

andrewg1 wrote:

(a) There seem to be hundreds of people offering money to borrowers. Is there really need for yet another mortgage adviser? What segments of the mortgage market are currently under-served by intermediaries?

There are also a number of advisers leaving the industry (albeit not as many as predicted) as they feel the weight of compliance putting pressure on their time and incomes. There will always be room for good, professional advisers who offer their clients a service rather than just mortgage placement.

Commercial Mortgages.

andrewg1 wrote:

(b) Is there a rosy future for mortgage advisers or does the internet, where borrowers can find and assess mortgages for themselves, pose a terminal threat for the intermediary?

Saw some research (while I was investigating some website plug ins that offer mortgage sourcing/applications) that said that of all the people who researched their mortgage online, only 3% actually applied online. Some then went direct to the lender over the phone/in the branch, but the majority were either researching information given to them by an adviser or 'forearming' themselves before they went to see one (lender based or 'independent').

Just because sites like this one may have a high percentage of people who take care of their own applications (especially if we ignore those who use L&C's information only service - L&C are afterall a broker), don't make the mistake of thinking the rest of the country is like that. People always have and always will want a friendly face and a bit of hand holding with major transactions like this - we are not CD retailers.

andrewg1 wrote:

(c) What are the potential sources of income for a mortage adviser other than the origination fee from the lender/fee from borrower?

Life cover etc, Buildings & Contents, ASU, PHI, Conveyancing, HIPs, Will referrals, introductions to services such as properties for sale abroad. Whatever your imagination allows you think of offering to your clients.

andrewg1 wrote:

(d) Is there potential, with endeavour, clever thinking and some luck, to make lots of money as a mortgage adviser? The reason I ask this is that I am considering another change-of-career opportunity which is potentially lucrative (though less interesting)

Very definately. However, there are also a number of very low paid advisers (£15000 or less) including some who came into the industry and saw it as an easy earner without putting in the 'apprenticeship' first.

andrewg1 wrote:

(e) FINALLY, would you advise someone close to seek a career as a mortgage adviser?

Yes, if they were prepared to work hard, had very good interpersonal skills, a genuine interest in the subject and a real satisfaction out of helping people.

andrewg1 wrote:

Again, any suggestions offered will be greatly appreciated!!!

Think very carefully before you set up a practice without having worked in the industry for someone else - I have found the last 16 months hard enough, and that's withhaving the experience I do in the industry. This does not mean you cannot be self employed. There will be many firms offering self employed contracts, but I would debate their suitability to a new entrant.

Good Luck. Hope you make the right decision for you and your clients.

dunstonh

To offer the insurance products, you would require further authorisation and studying.

I no longer transact mortgage business personally as the investment side takes too much of my time. What you do tend to find is that many mortgage advisors are those that were once investment authorised who no longer want the hassle and costs that go with that or the other way round where you have people who are using the mortgage side as the first step to full authorisation.

You will probably also find that, for a period of time (a couple of years I would have thought), you will need to work as an adviser within an established practice. I cannot see many networks being willing to authorise a firm whose only adviser/principal is new to the industry. Could be wrong though.

My network, which is the UK's largest, will not accept new entrants unless it is with an existing firm. Personally, I will be leaving my network later this year, if all goes to plan. I have outgrown the network and do not get value for money with the cost. Instead, I will be going directly authorised. Its quite a common step. Do 5 years or so with a network, then dump the network, go directly authorised and bring compliance in house. This is quite important to remember when looking at networks and making sure that the exit strategy is easy. You also have to look at the financial strength of some of these smaller networks. Some have gone under and some are just too small to survive long term.

MortgageMamma

I am a recent entrant to whole of market mortgage advice, although I do have 12 years experience in other areas of independent financial advice. I'm happy to share my personal experiences with you if you PM me, but one thing I would say is, you have to love this job to do it. If your just doing it for the money I doubt you'd suceed.

I personally enjoy it immensely, particularly working with first time buyers, very satisfying, but there are downsides and there is a lot of competition. I agree with what the others have said regarding the "training period" with an established company, I was thrown in the deep end and left swimming for my life by the first firm I worked for, and now I'm often helped out by another fantastic advisor on here when I struggle to place a case. You can't put a price on good training, and you can't rush it either. whatever your choice good luck, and as a last piece of advice don't be too proud to ask for help if you need it, Cemap'd or not!