Starting Mortgage Brokers ..

PHP_Adam

Not including usual business start-up costs, you will need around £5k for Data Protection Licence, Consumer Credit Licence and to become Directly Authorised via the FSA.

I became CeMap qualified before the crysis and only want to do this business if im in control of the process, instead of "pass the parcel" Appointed Representative. So i started thinking, that the Crisis maybe an opportunity for me to purchase said Licences from an Insolvency Firm? or just Browsing local Ads, for a retiring mortgage broker?

Can insolvency firms sell on these licences, or the business as a "container"? If so where would be best place to start?
Any suggestions in finding old Mortgage Brokers whom are closing?

... Any suggestions appreciated, as apart from said licences. This is a low cost business that I can run via recommendations to get it off the ground.

stephenni1971

Surely this is a wind up?

Not including usual business start-up costs, you will need around £5k for Data Protection Licence, Consumer Credit Licence and to become Directly Authorised via the FSA.

And who will do your compliance auditing? Have you any idea of the cost of PI cover?

I became CeMap qualified before the crysis and only want to do this business if im in control of the process

So you have CeMap which by any definition is a basic qualification and think you are competent to run a DA business?

Also as well as being in control you will be responsible for ALL your business affairs, registers, logs, reporting, T & C, auditing, TCF etc

Any suggestions in finding old Mortgage Brokers whom are closing?

Loads! There is no money in mortgage business any more.

This is a low cost business that I can run via recommendations to get it off the ground.

Low cost business? It's obvious from this post you haven't got the faintest idea about running a DA business.

Walk before you can run.

ciano125

stephenni1971 wrote: »

There is no money in mortgage business any more.

There is if you're lending to borrowers at 7% I reckon!!

magpiecottage

You CAN go directly regulated. CeMAP is, strictly, sufficient provided you do not do any investment business.

However, you need to ensure your business is able to run. The FSA will not authorise you unless it is satisfied that you have sufficient capital and PI cover.

On top of that you will need to have systems, premises and sourcing software. I think £5k is probably only about a third of what you will need.

CeMAP is also quite different from hands on experience. You will (no matter how experienced you are) also need to have quality assurance - you cannot self-supervise.

I provide QA. My clients tell me I am good (I hope so!) and charge very competitively - but I am by no means cheap.

So I don't want to be negative. Without ambition you will achieve nothing.

But I agree with stephenni1971. You need to get some experience, and capital, under your belt. Do some more studying too.

When you are ready to go, then come and find me, if you like.

PHP_Adam

stephenni1971, obviously not.
I am aware of compliance requirements, which is why I outlined basic regulation requirements. It sounds like you are used to large corporations and not start ups and from your comments it seems you are a "pass the parcel" AR Financial Adviser. Compliance and usual business activities will be dealt with internally.

We are talking about a startup company, it is low cost, their are few overheads allowing flexibility in a market. Their is money in the mortgage market, especially when you are aware of market conditions and know whom your market is. We're not talking about first time buyers here, that's dead. I wont go on to tell you how to do your "job"..

The reason mortgage brokers are suffering is because of bad practice, bad management (Mortgage Times) and due to complacency for many years on part of lenders and their introducer's. Or even down to not having ability to process applications post-downturn, a lot more boxes to tick.

magpiecottage, thanks for your reply. I've also booked CeCM and have an mortgage broker on board with several years experience. So we are looking good with Quality Assurance, but it is something that will need to be continually checked. As I run a software company, much but not all of the quality assurance and compliance requirements, will be met/checked via the internal bespoke processing software. Our preferred lawyer will also be asked to validate before starting business activities.

The reason for the topic, is in regards to feedback from the market research. We have applicants and intend to start processing their applications as soon as authorised, purchasing an established business which was going to be wound up comes with many benefits, one being promptitude.
Which is why I was asking advice, via the forums for recommendations in finding DA business, I do have list of FSA DA brokers but cold calling will be inefficient.

Wutang_2

stephenni1971 wrote: »

Surely this is a wind up?



And who will do your compliance auditing? Have you any idea of the cost of PI cover?



So you have CeMap which by any definition is a basic qualification and think you are competent to run a DA business?

Also as well as being in control you will be responsible for ALL your business affairs, registers, logs, reporting, T & C, auditing, TCF etc




Loads! There is no money in mortgage business any more.



Low cost business? It's obvious from this post you haven't got the faintest idea about running a DA business.

Walk before you can run.

you need to be more clear - do you think this a good idea?