is it bad time to be considering a career in mortgage or financial advice?

newrecruit

So much doom and gloom is going around in this forum which have led me to wonder....is it such a bad career choice to be considering becoming a mortgage or financial advisor? Is it due to current economic climate? would the situation get worse? I have heard that housing market will improve and there will be a demand for new mortgage advisors. FSA is also bringing in requirement for all IFA to be trained to a new standard making newly trained IFA's and financial advisors more attractive to banks and investors. Is this true or is this another spin by training providers to get the punters in? I certainly was roped into a course on this basis.
I am attracted by the potential success of being a mortgage and/or financial advisor. I am also aware that you do need to diversify including business protection, business mortgage, will writing and general insurance in the array of services I will be able to offer....but all this will cost me loads. Am I wasting my money? or will there be potential for success...or merely survival?

_Andy_

There's already a glut of CeMAP qualified staff on the market due to so many redundancies. I think you're stumbled into the trap of being seduced by the unrealistic OTEs quoted by people selling courses or job agencies peddling non-existing jobs.

opinions4u

Many lenders have stopped taking new business.

Major lenders have slashed their salesforces by 20% or more and massively reduced the availability of their deals to independent mortgage advisers.

While you could argue that "the only way is up" I suspect that it will be a slow and painful crawl up a difficult hill.

Good luck though.

tomthelondoner

It cannot be as bad - 6 months ago one of the major high street banks did not renew my contract (contracting staff were the first to go in the wave of redundancies). I was out of work for a total of 5 weeks before I started a job as a mortgage adviser. I applied to a few recruitment agencies - I kind of knew it is a waste of time, having once worked as a recruitment consultant. I applied directly to three mortgage brokers, got two interviews and subsequently got a job. No prior experience in mortgage advice, just sales and financial services, I did CeMAP on my own in 4 weeks as soon as the bank announced they won't renew my contract. Piece of cake. Come on, there are jobs out there!

mortgage-adviser-now

newrecruit wrote: »

....is it such a bad career choice to be considering becoming a mortgage or financial advisor?QUOTE]

YES

koexelek

Selling raincoats in the Sahara desert would probably be a better career option at the moment

dunstonh

is it such a bad career choice to be considering becoming a mortgage or financial advisor?

Financial advice is busy as normal. You tend to find it is less effected by market events than mortgages. Mainly as people still need advice and financial products and most IFAs dont do mortgages any more.

FSA is also bringing in requirement for all IFA to be trained to a new standard making newly trained IFA's and financial advisors more attractive to banks and investors.

No they are not. The qualification standard of level 4 will apply to all advisers. New or otherwise. What you were told is complete BS. In fact quite frequently, you get questioned by new clients on your experience and you cant sit exams for that.

I am also aware that you do need to diversify including business protection, business mortgage, will writing and general insurance in the array of services I will be able to offer

Increasingly IFAs are specialising and dropping part of business. I have been an adviser for 15 years now and not once I have I referred to a Will write. I wouldnt dream of letting my clients be ripped off by one. Most of the IFAs I know dont do mortgages and employ mortgage advisers or work on referral basis.

TEDDYRUKSPIN

newrecruit wrote: »

So much doom and gloom is going around in this forum which have led me to wonder....is it such a bad career choice to be considering becoming a mortgage or financial advisor? Is it due to current economic climate? would the situation get worse? I have heard that housing market will improve and there will be a demand for new mortgage advisors. FSA is also bringing in requirement for all IFA to be trained to a new standard making newly trained IFA's and financial advisors more attractive to banks and investors. Is this true or is this another spin by training providers to get the punters in? I certainly was roped into a course on this basis.
I am attracted by the potential success of being a mortgage and/or financial advisor. I am also aware that you do need to diversify including business protection, business mortgage, will writing and general insurance in the array of services I will be able to offer....but all this will cost me loads. Am I wasting my money? or will there be potential for success...or merely survival?

Really the simple answer is this! Yes and No! Puzzled? If you are brand new and have no bank / IFA experience with the full FPC or CeFA or CeMAP, many are not recruiting at this current moment of time.

All lenders at this current moment of time, want people with experience and the qualifications! Why? First, they do not want to retrain people! Saving £9k to £16k. Second they do not want to pay for your qualifications, which most lenders do!
At this moment of time, catch 22 situation.

Now...this is not all doom and gloom! Many of the trainee positions, yes! Some around! Are located in central london! But none of them can be filled due to the poor basic wage and high standard of living! Another catch 22!

If you really want to become a mortgage adviser or financial adviser, nothing is stopping you to take the exams now. You can slowly carry them out and it can take as long as 1 week to 12 months to complete. This depends on you!

CeMAP can be completed in a week to one month! One month for around 2 hours study time.

CeFA / FPC is a different boat! Can be completed in 3 weeks (hard study) to as much as 3 months - 12 months.

? Now the level 4 exams! This can take as much as 2 years! I would suggest you to carry this out with CII instead of IFS. 8 modules in all. Surprisingly knowledge based exams are all carried out on the computer. Synopsis exams are a 2 hours paper exam.

CeMAP - 1, 2 - multiple choice, i.e. not as easy as it sounds!
CeMAP - synopsis! Actually harder.

CeFA 2,3 - knowledge based.
CeFA 4 synopsis.

newrecruit

Thanks for your advice dunstonh and TEDDYRUNSKIN.
I know that Cooperative Bank is recruiting trainee financial advisers and offering training. If I hack it with them until I achieve CAS, what happens, can I take my cleints or do I have to start from the scatch?
Is the future of mortgage adviser as doomed as you say?
Is it a mistake to do CeMAP now? Should I be switching to doing CeFA?
if so can you tell me is CeFA is better or CFP with CII better in terms of working as a financial adviser?
Have you guys heard of Edward Jones? I was recommended this company yesterday. But from what I have seen, it seems like MLM with lot of door to door selling (is it legal to sell invenstments door to door?)

TEDDYRUKSPIN

newrecruit wrote: »

Thanks for your advice dunstonh and TEDDYRUNSKIN.
I know that Cooperative Bank is recruiting trainee financial advisers and offering training. If I hack it with them until I achieve CAS, what happens, can I take my cleints or do I have to start from the scatch?
Is the future of mortgage adviser as doomed as you say?
Is it a mistake to do CeMAP now? Should I be switching to doing CeFA?
if so can you tell me is CeFA is better or CFP with CII better in terms of working as a financial adviser?
Have you guys heard of Edward Jones? I was recommended this company yesterday. But from what I have seen, it seems like MLM with lot of door to door selling (is it legal to sell invenstments door to door?)

(1) Edward Jones is a so-called IFA position, but...it is extremely noted as a hard-sell company! It is almost like working from someone's home! You can actually search the people within your postcode. Feel free to phone them. However, alot of bad reviews out there. Basic is really good for a graduate. Can expect around £22,500 - £25k if you are smart at haggling. But definitely telesales job. They have customer contact lists, and you shoot out to their houses. This company is more well know in america.

(2) CeMAP or CeFA? These are completely different areas of work. CeMAP, mortgage advising and CeFA - financial advising - investments; pensions; life; tax. Generally speaking this will be down to you.

(3) CeFA / CFP / CII are not difference at level 3. These are the examinations. All are not on par. CeFA will be the best bet as it is more cheaper. The others you pay a registration fee and their modules are separated out. Each CeFA module includes 2 per examination. So you will take 7 exams. I believe the others now have 8 modules to take. All multiple choice at a designated centre but final synopsis exam is either computer centre (IFS) or paper exam (CFP/CII).

(4) Co-op - their salary is astonishingly low. The trainee FA enters at £16.500 basic salary (excluding London + £2,500). Expect to only hit maximum £6k bonus if you are lucky. Realistically - £3k. So an average salary of £19.500 (100% on target). The company is ok but once again, multi-tied.

Just be aware that many agents state that you will receive full CAS within 6 months. They are lying. The company gives you roughly 2 years to pass CeFA level 3, but now expect you to have Level 4 AFPC by 2012. You will only be signed off once you have full CeFA and a demonstration of competence. Expect 2 years for CAS. Reason being is that many banks now know that if they sign you off, you will tend to leave for a higher job.

You will be initially trained up to sell / internal examinations for the first 6 weeks. Then you are monitored for at least 3 months and then monthly.

Just remember, being an FA is not as easy as it sounds. It is very high pressured and stressful. The bank managers want you just to sell and bring in their bonuses but you still have to balance out what is immorale and what is considered good service! You will be arguing with the retail branch manager as well as they have their figures to hit. Customers always think you are there to rip them off. It is really difficult.

As long as you are genuine individual and that you do this job truthfully, you will be a success. I myself have demonstrated this many of times.

Dan_1976

IFA go for it, mortgage broker, no DONT BOTHER.

I believe that with the new FSA rules and lenders cutting business levels the broker will be fee charging only and also pushed out by lenders.

AS big D says, IFA's will be busy as they cover so many subjects and they are normally not answered by a web search engine!