Thinking of joining a Mortgage Network

pipee

I have recently completed CeMAP and have been talking to a mortgage network about joining them as a sole trader. They are prepared to take me on despite having no previous experience and mentor me etc.

It all seems a bit to good to be true, they will train me and approve me etc. and support me through the whole process at no cost/risk to me and even give me a virtual stake in the business which I can realise if they are sold or float

They pay what seem like good procuration rates (0.35% ish) and their fees don't sound that bad Protection Insurance (£270 per month) and a supervision charge £250 per month (which are waived for the first 3 months)

Anyone here working for a network and can give me some pointers?

dunstonh

They are prepared to take me on despite having no previous experience and mentor me etc.

That is unusual.

It all seems a bit to good to be true, they will train me and approve me etc. and support me through the whole process at no cost/risk to me

Networks do not normally do that.

and even give me a virtual stake in the business which I can realise if they are sold or float

Dont hold your breath. Very few make it to float stage.

They pay what seem like good procuration rates (0.35% ish) and their fees don't sound that bad Protection Insurance (£270 per month) and a supervision charge £250 per month (which are waived for the first 3 months)

Seems very expensive for only mortgage business.

Anyone here working for a network and can give me some pointers?

You dont work for a network. A network is a supplier of services. Usually only related to compliance and some administration. However, some of the things you remark on seem more like an employer or linked to a firm than a proper network. That said, some networks are not intrusive whilst others treat you like a salesforce.

Who is the network in question?

homer_j_3

You need to get some experience and make your mistakes in an employed role.

You seriously do not know how much you still have to learn from passing CeMap.

If you choose to ignore my advice and forget going on your own straight away then please ensure that you get a solicitor to look at any contract they give you because it is likely to be weighted very favourably against you.

pipee

dunstonh - network is Openwork, PI also covers general insurance, MPPI etc etc. I am not expecting to make any money from a float but see as it just a bonus. I realise I don't work for them directly as I will effectively be a sole trader, bad wording in my original post.

homer_j - I am under no illusions that this is going to be easy but there appears no risk to myself as I will be doing in conjunction with my existing employment whilst I build it up. I will certainly get the contract checked out

homer_j_3

do u have a contract, do you have min turnover, do you have to pay a fee regardless of business being submitted?

openwork are part of Zurich which would make me run a mile - Zurich that has had a bad reputation for Hiring and Firing in the past.

Seriously pipee, I have nothing to lose by you ignoring my advice but a network is not the right move for any first time adviser who is fresh into the industry like you. Leave this post open and I am sure some of the other brokers will give their view.

pipee

homer_j wrote: »

do u have a contract, do you have min turnover, do you have to pay a fee regardless of business being submitted?

openwork are part of Zurich which would make me run a mile - Zurich that has had a bad reputation for Hiring and Firing in the past.

Seriously pipee, I have nothing to lose by you ignoring my advice but a network is not the right move for any first time adviser who is fresh into the industry like you. Leave this post open and I am sure some of the other brokers will give their view.

I guess the contract will come later on after application is approved. I will obviously starting from scratch and the fees will payable each month (except in the first 3)

What do you mean by a bad reputation?

I appreciate you taking the time out to reply. It's the whole reason why I posted to get peoples thoughts who actually work in the industry. If they provide the support they claim to what would be wrong with starting out in this way?

homer_j_3

You need to see a contract before you commit anymore time to the idea.

I will PM you a forum for brokers and you could go and ask in there for some more opinions as this is mainly consumer based.

You are probably thinking at the moment - how hard can it be to sell a mortgage, I have my CeMap, I have time on my side to build things up? Am I correct?

Have you been told where your leads will come from? Do you think that these leads will be exclusive to you, do you think that there won't be 10 other hungry brokers out there competing for the leads? It is a tough world trying to start from scratch as you are.

You are lucky enough to get some clients to get you going, you are going to find it tough to apply all your CeMap stuff to what you are doing and get everything to a standard staright away.

Do you have any experience in explaining mortgages and products to a client in a way that is compliant yet easy to understand manner?

Could you cope with not seeing any income for at least 6 months from submitting your first few sales?

These are some of the questions I would be asking.. Zurich may have changed but about 4 or 5 years ago when I was approached by them, they had a terrible reputation for treating their advisers badly. Maybe I spoke out of term but thats how I have known them.

MortgageMamma

Take Homers advice on board. the best place to learn to advise is in a bank where there is structured training and you are not personally liable for mistakes

Taking CeMAP is like passing your driving test, you have learnt the BASIC mechanics, learnt the BASIC theory, but you do not learn to drive properly until you are let loose by yourself on the road.

By very very careful coming into the industry on a self employed basis, as being a self employed person you have far less rights than an employed individual. I have just left a company that I was self employed with, I had a contract stating I had to give four months notice when I left - I gave my notice on 16th March and by 17th of March they had taken all my client files, removed my sourcing systems, and de-authorised me. This has left me with a 6 week gap where I have not been authorised to work and I've had to pass my clients to another broker who is a friend. They also owe me around £12k in commission - I'm not likely to see that - they tried to get away with paying me £713 in March and have broke contract terms like I break hearts

Be very very careful, I know I'm giving the industiry a bad name here, but there is a lot of protection from the FSA and other bodies for the consumer, but you have none whatsoever and there are some cowboys out there that will use your naivety to their advantage like they did me

I'm a bloody good adviser though by the way!

homer_j_3

MortgageMamma wrote: »

and have broke contract terms like I break hearts

:rotfl: :money: I like that, I like that a lot

MortgageMamma

homer_j wrote: »

:rotfl: :money: I like that, I like that a lot

And knowing me like you do you know its true! for a big fatty I dont do bad!

MM

pipee

homer_j wrote: »

You need to see a contract before you commit anymore time to the idea.

I will PM you a forum for brokers and you could go and ask in there for some more opinions as this is mainly consumer based.

You are probably thinking at the moment - how hard can it be to sell a mortgage, I have my CeMap, I have time on my side to build things up? Am I correct?

Have you been told where your leads will come from? Do you think that these leads will be exclusive to you, do you think that there won't be 10 other hungry brokers out there competing for the leads? It is a tough world trying to start from scratch as you are.

You are lucky enough to get some clients to get you going, you are going to find it tough to apply all your CeMap stuff to what you are doing and get everything to a standard staright away.

Do you have any experience in explaining mortgages and products to a client in a way that is compliant yet easy to understand manner?

Could you cope with not seeing any income for at least 6 months from submitting your first few sales?

These are some of the questions I would be asking.. Zurich may have changed but about 4 or 5 years ago when I was approached by them, they had a terrible reputation for treating their advisers badly. Maybe I spoke out of term but thats how I have known them.

As I said I am under no illusions this is going to be easy, but I am very determined. The network have made no promises other than training to get me authorised which will include everything I need to know to explain and sell the products. Thanks for the link I will take a look. Ideally I am trying to find some other people who involved with the network as well.