Training to become a Mortgage Broker / IFA advice please!

paula47a

Hi,

The cost through IFS is £135 per module this includes one exam any resits required cost a further £95. Each module recommends 40-60 hours study time. Hope this helps, may have been answered already didn't read all threads!!

knowlesey wrote: »

Hi All

Thanks for your responses on this- Very insightful

Let me tell you my scenario and see if you think there is a way I could do this.

I currently work in London in Finance but am looking for potential ways out (of London) and to be able to manage my own business.

I am trying to find a way over the next 18 months to be able to be able to advise on mortgages without leaving my current role

I can do the cemaps off my own back (although I've yet to find somewhere that sells the coursebooks without some overpriced course to go with it- Anyone know?)

I guess my question now would be; 'Is there a way I can train for my 'competent advisor status' without having to be in a training job. i.e is there a way I could train on the job in the evenings but have some kind of training contact at the end of the phone or would that not work Dunstonh mentioned 'Networks' is that something that could work and if so would you have an example company I could take a look at.

Thanks again for your responses, much appreciated
D

WildHaggis

A belated response to a few queries in this thread, but there does seem to be a dearth of this type of information around.

To become a mortgage broker, you need two things :
relevant qualifications.
practical experience.

Qualifications are usually Cemap, but don't have to be. CF1/CF6 from the Chartered Insurance institute are also fine. IMHO, they are easier to pass. There are sites selling access to a bank of practice exam questions too. You can do this studying on your own. Cost is under 500 pounds.

Practical experience is gained by doing the job, under supervison. This works a little like getting your flying licence, its a process: you watch, you practice, you do a littel bit, you practice, you do a lot, you practivce, then you do it solo (still supervised), then you learn a little bit more. Once your supervisor is happy with your performance, you then would undertake a sign-off course, and be ready to operate on your own. YOu usually need to be signed off by your network also. And, even after obtaining competent adviser status, you would almost ceratainly need guidance (a mentor) for a year after that.

There are two different skillsets: mortgage advice, and creating appointments. All brokers have some of the first skill, many brokers don't have enough of the second. That often leads to a lack of business , and that leads to leaving the industry. There are ways to overcome this obstacle, such as buying appointments, or joining a company that gives you appointments (or makes it easy togenerate your own .. a bank).

It's a great careeer, once you get over the initial period while you are building your business.
I'm still building :-)

UK007BullDog

Without a bank, building society, estate agency chain or big broker you will not make it in the beginning of your new career. The FSA are looking very hard at brokers especially the one person bands out there.

Some networks will no longer take on new CeMAP'ed people without experience and will pass you on to their brokers.

Here are some random networks:
www.homeofchoice.co.uk
www.mortgage-intelligence.co.uk
www.pmpnetwork.co.uk
www.network-data.co.uk

Joining a network means costs to you in fees.

You could go alone however you would have the www.FSA.gov.uk breathing down your neck.

Study materials you get from the site mentioned above by another poster. There is cheaper materials offered on Ebay, but they could be out of date as the stuff gets rewritten every year. And anyways you need to be registered with the IFS or CII to be able to take the exams, so go and pay the full price and sign up. You have 1 year to pass each module. If you do not do it on time you pay the full price again. If you do not pass you pay for the exam again.

If you use Google you will find lots of companies that will train you but buyer beware and talk to others who went to their courses.

If I were to start out into Finance this year I would go the CeFA (IFA) route, its longer and more expensive but well worth it as there is a lack of IFA's now and even more in the future.

On one of the broker magazine websites they were asking in a poll how many brokers thought of chucking it in this year nearly 70% said they thought about it. So the market is tough and only those with sales skills or supported by some large conglomerate will survive. The first couple of years you NEED the support and training to learn. CeMAP and the real world have nothing in common, absolutely nothing! So if you go out there and sell off your own back without proper training (there are networks out there that will not train and might take on a newbie) you risk everything if a customer complains about you. You need indemnity insurance and as a newbie it might be very high maybe around £150 per month or even more. You need to earn that money, plus the sourcing software costs monthly fees, the network costs fees, your computer, software, LOTS of stationery, phone, mobile, internet. But one thing you cannot buy is knowledge. We will never stop learning. And those with knowledge are the ones in this market who are surviving.

As a broker you will also work longer hours than a bank employee for example.

homer_j_3

UK007BullDog wrote: »

As a broker you will also work longer hours than a bank employee for example.

I dunno . Since changing the way I work, I have found a whole lot better quality of life. That said, I don't need to do a lot of business to keep my head above water but finding the best way to get rid of those "potential" clients who just want me as a research facility, I am able to give the genuine clients a great service.

herbiesjp

homer_j wrote: »

I dunno . Since changing the way I work, I have found a whole lot better quality of life. That said, I don't need to do a lot of business to keep my head above water but finding the best way to get rid of those "potential" clients who just want me as a research facility, I am able to give the genuine clients a great service.

Got to agree with homer

Since going self employed as a broker, I am free to do what I want when I want. Although having said that, I often find myself answering emails and calls "out of office hours" - which does not bother me, as it goes with the territory. But the clients appreciate it, and it shows, when they come back to you and refer their friends and family

UK007BullDog

True, true, but at the beginning the newbies will have to work harder or sink. Once there is a decent client bank and a good stream of referrals then one has a better quality of life.

dunstonh

Looking at it from the IFA side, it certainly is a better quality of life than a bank. I could never go back to that again. Although they couldnt afford me now anyway However, the banks are really becoming a necessary evil for trainees if you want to give yourself a better chance of long term success.

At the beginning it will be really hard work. The rewards come later and if sucessful they are very good. However, only a minority make it there.

The current credit issues will see mortgage broker numbers reduce. There are too many for the level of work. The first to be hit will be estate agent mortgage brokers and those that relied on indemnity commission life policies. Once customers start cancelling those when money gets short the clawbacks will cripple those relaying on imdemnity. (mirroring what happened in the 90s)

IFA numbers are going to drop as well with the RDR. I had another IFA approach me today about dropping IFA status and going mortgage and protection only and introducing investment business to me instead. That is becoming a common subject recently and that is likely to pick up speed. That doesnt help new mortgage advisers as firms will be more interested in an ex IFA with a client bank and trail commission joining them than a new recruit with no experience, no income and no client bank.

federer

Ohmsoft

what do you do for a living??

federer

i work as a financial advisor for a tied bank, its hard work as its all about figures and not advice

im interviewing for an online consultant post this week for a life company.

wondering what youre doing ohmsoft without working in sales.

My sales skills are good but in a bank it sno so much about skills but the staff referring to you and your success is largely dictated by them which is a shame

Rcraigs

I have been property developing for 2 years now and I am seriously considering becoming a mortgage broker.

I have a fair understanding on the logistics of mortgages through investing but obviously no real experience, Im considering asking my own broker to take me on as a newbie and hopefully train me up. He owns a fairly large financial services company? Is this a wise decision or should I be approaching a bank?

Could anybody tell me what the average start up wage is and is the job commission based?

What qualifications will I need, what is the cost to obtain these and what time period would you expect from somebody to be giving mortgage advice from a beginner?

Any advice is much appreciated.