Training to become a Mortgage Broker / IFA advice please!

Rks0

Sorry to ressurect an old topic, but I really could do with some advice on this topic. For my sins, I have recently completed Cemap, and am looking to get into the industry, as a mortgage broker, however' I keep getting conflicting advice. I understand that in order to trade by myself I need to achieve 'Competent Adviser Status'. How would I go about doing this?
Also, I have been told that BEFORE I can even start to work with someone in a trainee capacity, I need to get both a data protection licence & a credit consumer licence. Is this true?
Any help would be greatly appreciated.

dunstonh

I understand that in order to trade by myself I need to achieve 'Competent Adviser Status'. How would I go about doing this?

Typically up to a year of service and being signed off by your compliance officer as being competent. Also, working for yourself has a different FSA Control Function and you will need at least 12 months of existing service for most decent networks to consider you.

Also, I have been told that BEFORE I can even start to work with someone in a trainee capacity, I need to get both a data protection licence & a credit consumer licence. Is this true?

If you are self employed but attached to a firm or when you are self employed you do need a data protection licence. A consumer credit licence is not required for the provision of mortgage advice. However, for the provision of other loans, debt counselling or anything apart from normal mortgage advice provision, you would need a consumer credit licence.

An employee doesnt require these as their employer has it.

Conrad

I would recommend the corporate estate agency route as the best place to learn. Leads will only come to a broker where the EA staff have confidence in thier ability, but make no mistake, most leads will take the form of fairly unwilling home seekers that don't want to talk to you - that's were the real skill cuts it - turning non receptive often grumpy prospects into a client.

I no longer have this issue though, people come to me.
In 1997 I went self employed and now own by own high street shop which draws people as it's prominent and smart. As lenders such as C & G close thier branches, shops like mine become a fairly important feature. I also get business from the net.

TBH it's a horrible business to be in and I am looking forward to selling up and getting out in the next few years (I'd go now if someone offers me the right money). You will pay off the commercial mortgage in no time!


I have a high volume of new enquiries, but the frustration now is that most of these will be declined for a mortgage. This means lots of work for zilch and people have no idea how much work you do just trying to place a case.

Once property prices pick up, and remortgaging becomes viable again, getting cases through will be easier. In busy times a shop like mine that can be run by a single adviser with admin staff, can generate £20,000 per month.

My shop is just outside North London.

koexelek

Conrad wrote: »

TBH it's a horrible business to be in and I am looking forward to selling up and getting out in the next few years (I'd go now if someone offers me the right money).

I know just how you feel

frankie5angels

I have read some of the posts with interest.

I am giving my story only, everyone has a different experience.

I was told in January 2008 not to become a mortgage broker, I had no clients and no qualifications or experience. I took redundancy, spent 1 month taking CeMAP courses and exams. I researched a lot of mortgage networks before joining a certain network.

Their BDM was very helpful and helped go from qualified to competent. In the first year I made a modest living (approx £20,000) and fought hard for all the business I got.

My business operated from my spare bedroom. I bought leads and asked for referrals from clients when I got them.

It is an extremely steep learning curve - the most difficult challenge I have ever engaged in, and I don't mean the exams, the whole process of moving into a highly regulated environment.

Coupled with that and the fact that the mortgage market was declining rapidly I worked hard, but struggled.

In 2009 things began to pick up. The key is to diversify. If you want to be a one trick pony mortgage adviser, go and do something else because you will not make a living - if however, you can look at new opportunities, have an armoury of good, value for money products, understand them and how they can benefit your clients then you can earn a good living.

I anticipate making approximately £75,000 thtis year. That is with a lot of hard work and dedication.

2 pieces of advice: Remember training only begins when you've got CeMAP, they are merely regulatory requirement, they do not teach you how to advise.

Join a good company, network etc. Don't get too bogged down in fee splits etc, look for the company / network that provides with real support ie a BDM who will personally visit you and help you, ongoing training and a thirst for success.

I'm with Home of Choice and have found them absolutely brilliant. But do your own research and find what is right for you.

GAM_2

I have read this thread with a lot of interest as I am looking at doing this an an add-on to what I currently do.
I would be very interested to know what charges the mortgage networks charge as a commission to you if you were to join their network. Any ideas what the ball park figure is and what you get for that?

Conrad

Well despite post 26, I talk to lenders and packagers everyday and am told how rapidly the broker community has shrunk. Nearly all packagers have gone out of business - and that was a massive muti billion pound sector.

Talking to one Watford packager this week, he said they used to complete 400 mortgages per month, and yet for example last month they completed just 2.

Understand this - lenders want the high quality applicants, and indeed many offer better deals for customers going direct. Those high quality clients DO NOT EVER need a broker. They can very simply with 1 hours research find the best deal, just as they do for thier holiday (millions of options) or car.
No 'adviser' can offer such a person anything extra or value added, as such people in the main have the intelligence to very simply source the best deal.

These same clients tend to be canny and clued - up, so they also tend to want the cheapest life insurance from a repuatable provioder, and for most again this is very straigt forward and requires zero advice.

SO WHAT DOES THAT LEAVE?

Brokers are there for the complex cases. No amount of training can possibly prepare you for this. You need a fast brain and to be able to think way outside the box. At the same time you need very good communicative skills - one wrong word / misplaced vibe will spook the client away even if you were being 100% truthful!

You need to be very tough and business minded. Any monkey in a suit can use a sourcing software package, thats only 1% of the job.

Good luck and all, but dont think for a second it will be anything other than very very hard.

TBH if I were starrting out there are much better industries to look at, such as solar heating for the residential markets.