Why a high failiure rate for mortgage advisers?

Conrad

newrecruit wrote: »

It is worrying, however, for the new mortgage advisers that there will be a flood of ex IFAs looking to become a mortgage advisers as well

This happened from about 2001 - at least in my geographic area anyway. Lots of IFA's got into mortgages following the dotcom crash. Over time, some of these IFA's realised just how clunkingly difficult it is to get mortgage cases through and gave up the role.

There will always be an ebb and flow.

There have been too many brokers, so for sure you need to be pretty good if your'e going to survive. Someone I know became a broker 3 years ago and is now throwing in the towell as there just is'nt enough business for him.

You say you love the finance business--really?? What's to love?

MY ADVICE TO YOU;

Get into a decent EXPANDING business sector, just as renewable energy, recyling, enviromental services etc.

Wakey2008

Thrugelmir is wrong. All mortgage advisers recommending on 1st charge secured residential mortgages have to be qualified and registered.

People who solely do 2nd charge loans or buy to lets do not have to be qualified but they are not mortgage advisers. There also exists the non-qualified mortgage agents like the badly named mortgage specialists at Barclays but they can only give information and cannot advise or give an opinion under any circumstances.

newrecruit

I thought I might post a clarification for those who is new to mortgage advise.

Mortgage is a legal contract between mortgagor (borrower) and mortgagee (lender) to use the house as the security for the loan, hence it is essentially a secured loan.
It is the first-charge loan because it takes priority over other secured loans.

For first-charge secured loans (ie Mortgage) Financial Service Skills Council requires advisers to be qualified to CeMAP 3 level and the advisers are directly or indirectly regulated by FSA.

For the second-charge secured loans as well as other secured loans such as car finance, there is NO requirement for the broker to be qualified.
The secured loans in this respect is NOT regulated by FSA, but it is regulated by OFT (office of fair trading) under the CCA (consumer credit act)
It is possible for someone to set up a business and apply for consumer credit license from OFT and start selling secured loans without formal training.
One way to do this is to go with a super broker like Promise Solutions and earn commission every time the loan application goes through.

CeMAP and CeFA module 1 are the same, so it is gives someone to choose which way to go. CFP with CII is specific to financial advisers. CeFA goes to module 4 and after 2012 you will be required to be trained to DipFA or other level 4 level.
CAS (work experience) applies to financial advisers but not to mortgage advisers.
Work experience gained as a mortgage adviser does NOT count towards CAS but it will give you firm foundation.

It is advisable to become a mortgage adviser and then train to be come a financial adviser. Most of trainee financial adviser positions are filled by experienced mortgage advisers (this is what I found).
Co-op bank takes on trainee financial advisers but the pay is very low and the role is high pressured.

There is an element of security being a tied financial adviser to a bank but whe you decide to become fully independent as a IFA, it is hard and requires both experience and talent to succeed.

Countrywide estate agency is agood place to start as a mortgage adviser. Work and get qualified at the same time. You can then go and join a network such as Mortgage Advisers Bureau.

The work for the mortgage adviser is drying up because of the current market situation and also because of the changes made by the lenders, there is a lot of competition for the role, lack of customers and lack of suitable packages. There is a lot of pressure to perform.
It is worth looking at Conrad's post above to know what makes a good mortgage adviser.

Anything to add?

Thrugelmir

newrecruit wrote: »

I thought I might post a clarification for those who is new to mortgage advise.

Mortgage is a legal contract between mortgagor (borrower) and mortgagee (lender) to use the house as the security for the loan, hence it is essentially a secured loan.
It is the first-charge loan because it takes priority over other secured loans.

For first-charge secured loans (ie Mortgage) Financial Service Skills Council requires advisers to be qualified to CeMAP 3 level and the advisers are directly or indirectly regulated by FSA.

For the second-charge secured loans as well as other secured loans such as car finance, there is NO requirement for the broker to be qualified.
The secured loans in this respect is NOT regulated by FSA, but it is regulated by OFT (office of fair trading) under the CCA (consumer credit act)
It is possible for someone to set up a business and apply for consumer credit license from OFT and start selling secured loans without formal training.
One way to do this is to go with a super broker like Promise Solutions and earn commission every time the loan application goes through.

CeMAP and CeFA module 1 are the same, so it is gives someone to choose which way to go. CFP with CII is specific to financial advisers. CeFA goes to module 4 and after 2012 you will be required to be trained to DipFA or other level 4 level.
CAS (work experience) applies to financial advisers but not to mortgage advisers.
Work experience gained as a mortgage adviser does NOT count towards CAS but it will give you firm foundation.

It is advisable to become a mortgage adviser and then train to be come a financial adviser. Most of trainee financial adviser positions are filled by experienced mortgage advisers (this is what I found).
Co-op bank takes on trainee financial advisers but the pay is very low and the role is high pressured.

There is an element of security being a tied financial adviser to a bank but whe you decide to become fully independent as a IFA, it is hard and requires both experience and talent to succeed.

Countrywide estate agency is agood place to start as a mortgage adviser. Work and get qualified at the same time. You can then go and join a network such as Mortgage Advisers Bureau.

The work for the mortgage adviser is drying up because of the current market situation and also because of the changes made by the lenders, there is a lot of competition for the role, lack of customers and lack of suitable packages. There is a lot of pressure to perform.
It is worth looking at Conrad's post above to know what makes a good mortgage adviser.

Anything to add?

You've covered eyertyhing. Except like any professional career its hard work and networking that will yield results. Even in difficult times the best will suceed.

Conrad

In my 'other' life I am a struggling record producer and it reminds me a lot of broking, only even more intense as only the most energetic, the most driven will make it.

You have to ask yourself prior to comming a broker whether you truly are driven, and answer honestly. Being driven is very much more than just commiting a few months to exams. Would you for example just fax a document and print out the fax reciept, or would you then call the Bank, hold for 10 minutes to check they have it in thier hand?

Will you check every details in a think client file when after some months work they suddenly change property meaning a different loan size and potentialy different mortgage product is required? Ok you will! Great - that may mean making tons of ammendments as the new deal requires differnt rules, therefore the fact they were merely going to make overpayments to pay down the interest only loan that was fine before, may not now be fine on the new deal as an ISA is required, but hang on, the mortgage term is only 11 years and the ISA limits mean the client cant accumulate enough of a sum within 11 years, etc etc etc etc

koexelek

Conrad wrote: »

You have to ask yourself prior to comming a broker whether you truly are driven, and answer honestly. Being driven is very much more than just commiting a few months to exams. Would you for example just fax a document and print out the fax reciept, or would you then call the Bank, hold for 10 minutes to check they have it in thier hand?

10 minutes :eek:

You are an optimist aren't you Conrad ?

newrecruit

If you are entering any profession with sales involved, you need to be determined and wade through negatives to get the result.
Afterall, you are dealing with people...they will change their minds, they will not be entirely honest, they will back foot on things which you feel that there is no risk...it is frustrating to say the least...
I would have thought, this is the case much more so as a record producer, Conrad?

newrecruit

I have been in contact with loads of potential employers including Countrywide group, but I am getting the feed back they are not taking on trainees at present and won't let me submit application. (this seems to be dependent on the area - I need to be open to re-location, I suppose)
I have decided to opt for getting myself full CeMAP qualification before I apply to give me an edge.
I came accross the fact that Barclays is recruiting for mortgage advisers at the moment.
It is open to full CeMAP guys only but it also says Registered Mortgage Adviser status is required.
Does anyone know what this is?
I thought only Financial Adviser needed CAS. How do you get this RMA status? No one I talked knows.