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Why become a mortgage broker

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Why become a mortgage broker

edited 30 November -1 at 12:00AM in Mortgages & Endowments
167 replies 9.1K views
JoeK_3JoeK_3
1.4K posts
edited 30 November -1 at 12:00AM in Mortgages & Endowments
What with the FSA regulating mortgages, having to pass mortgage adviser qualifications, compliance, complaints, etc. it has become harder than ever to become a mortgage broker.

So if there are so many problems associated with becoming a mortgage adviser, why, oh why do so many people strive to become a mortgage broker.

JoeK
I am an Independent Financial Adviser.
Anything posted on this forum is for discussion purposes only. It should not be considered financial advice. Different people have different needs and what is right for one person may be different for another. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser who can advise you after finding out more about your situation.
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Replies

  • Most people who come into the industry now do not know what it was like before regulation, thats why.

    I think some people see it as an easy job where you make easy money and lots of it at that. It couldnt be further from the truth my earnings are actually quite modest (probably because I don't charge fee's)
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and should not be regarded as financial advice.
  • Most people who come into the industry now do not know what it was like before regulation, thats why.

    I think some people see it as an easy job where you make easy money and lots of it at that. It couldnt be further from the truth my earnings are actually quite modest (probably because I don't charge fee's)

    Why a mortgage broker?

    1) Why not a secured loans broker?
    2) Why not an unsecured loans broker
    3) Why not a commercial mortgage broker?
    4) Why not an insurance broker?
    5) Why not a money broker?

    Why not a mortgage compliance officer?

    JoeK
    I am an Independent Financial Adviser.
    Anything posted on this forum is for discussion purposes only. It should not be considered financial advice. Different people have different needs and what is right for one person may be different for another. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser who can advise you after finding out more about your situation.
  • Well

    I am sure there are people entering those professions? But, for example, what qualification do you take to learn abotu secured loans? I reckon many of the occupations above a with the exception of insurance and unsecured loans are taken by qualified mortgage brokers...

    To make money from insurance only (GI) you would have to be self employed and if you do that without mortgages as a lead you would have to be well connected. Failing that you would probably end up working for someone like swinton insurance for 16-18k per year. you can get that working as a typist.

    Regarding compliance. Thats something I am actually superb at and thought about going into myself once, until I saw the salary. For example, GMAC are taking on compliance officers at the moment with a 500k mandate at just 28k

    I think the thing that attracts people to mortgage broking it the prospect of uncapped earnings and flexible hours. Perhaps they think it is a prestiguos position, or perhaps they do it because they want IFA earnings and respectability without having to sit all the FPCs/CFP exams...who knows!
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and should not be regarded as financial advice.
  • Regarding compliance. Thats something I am actually superb at and thought about going into myself once, until I saw the salary. For example, GMAC are taking on compliance officers at the moment with a 500k mandate at just 28k

    Take a look at this article found in the Sunday Financial Mail recently.

    Many individuals are not aware of the opportunities that are available in the UK financial sector. Demand for experts fuelled by the Financial Services Authority taking over regulation of the financial services sector has increased the need for compliance officers nationally. This wave of new rules and regulations has fuelled pay rises for regulatory experts both in London and other areas of the UK by as much as 25% due to a skills shortage.

    Recent surveys have highlighted that the biggest pay rises have been enjoyed by compliance officers – the internal watchdogs employed by firms to ensure that advisers are abiding by the myriad rules covering financial services.

    Although regarded by many as the least sexy in the financial services industry, a mortgage compliance officer with five years experience earned close to £100,000 in 2006 in the City of London, this is up from an average of £87,000 in 2005.

    All this is good for the experienced individual but what about the junior or the non-experienced you might say. Well, the most acute skills shortages are at the junior end of the market, where there are not enough newly qualified finance and legal professional coming through to fill demand.

    JoeK
    I am an Independent Financial Adviser.
    Anything posted on this forum is for discussion purposes only. It should not be considered financial advice. Different people have different needs and what is right for one person may be different for another. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser who can advise you after finding out more about your situation.
  • Well perhaps there is a place for me somewhere yet!

    But I may consider it when I'm old and tired, I enjoy advising so much I doubt I'll give it up for at least 20 years
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and should not be regarded as financial advice.
  • Important update! We have recently reviewed and updated our Forum Rules and FAQs. Please take the time to familiarise yourself with the latest version.
  • I see you too are a business owner JoeK. Who does your compliance, do you have someone internal or do you outsource?
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and should not be regarded as financial advice.
  • I see you too are a business owner JoeK. Who does your compliance, do you have someone internal or do you outsource?


    We outsource it to a self employed compliance consultant lady, who owns her own farm as a sideline..

    JoeK
    I am an Independent Financial Adviser.
    Anything posted on this forum is for discussion purposes only. It should not be considered financial advice. Different people have different needs and what is right for one person may be different for another. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser who can advise you after finding out more about your situation.
  • LisaT186LisaT186 Forumite
    225 posts
    Don't forget that it can be enjoyable too! Helping someone buy their dream home, the biggest purchase of their life! Meeting lots of different and interesting people, 'selling' to someone who actually wants to buy!!

    I actually think it is a more attractive job now that it is regulated, passing exams and taking pride in your work really feels like an achievement.

    The more you put in, the more you tend to get out, you can work part time or all of the time, its a flexible job in the right firm / your own business.
  • But why a mortgage broker?
    What are the attractions?

    It's an extremely difficult job now?

    It can take an average of 10 - 14 hours of work from the initial enquiry though to completion to complete a mortgage case! But yet we stick to it and people aspire to become a mortgage broker. Why?

    Is it not sexy to become a mortgage compliance officer?

    JoeK
    I am an Independent Financial Adviser.
    Anything posted on this forum is for discussion purposes only. It should not be considered financial advice. Different people have different needs and what is right for one person may be different for another. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser who can advise you after finding out more about your situation.
  • MortgageMammaMortgageMamma Forumite
    6.7K posts
    Part of the Furniture 1,000 Posts Combo Breaker
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    I think my mortgage compliance officer is very nice :)
    I am a Mortgage Adviser

    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
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