What makes a good mortgage advisor?

SteveSilva

Hi guys,

Some of you may know I am planning to study for Cemap qualfications, and was really wondering if experienced advisors can take some time to explain the ups and downs of the job?
How do you sell your product? How can you make sure the client doesn't go else where? etc.

Thanks

AndyWallace

SteveSilva wrote: »

How can you make sure the client doesn't go else where? etc.

Thanks

If they've come to you on the recommendation of someone who's previously used you, then they are going nowhere.

dunstonh

How do you sell your product?

Your product is advice. Do not forget that. Its even more relevant today as the FSA has issued its retail distribution review which will put an end to IFAs. Whilst IFA covers investment class products and not mortgages, expect to see mortgages and general insurance to follow to some degree in the future. Factory gate pricing is likely to extend to mortgages in the future.

and was really wondering if experienced advisors can take some time to explain the ups and downs of the job?

There are three issues.

1 - Having enough clients/footfall to generate enough business
2 - Having the skills and knowledge and ability to give best advice both now and in the future
3 - Admin. There is a lot of it. You need to be accurate and you need to be good at it.

Over half of new recruits leave the industry within 2 years. Mostly due to lack of business. Footfall/client banks are vital to succeed.

SteveSilva

Your product is advice. Do not forget that. Its even more relevant today as the FSA has issued its retail distribution review which will put an end to IFAs. Whilst IFA covers investment class products and not mortgages, expect to see mortgages and general insurance to follow to some degree in the future. Factory gate pricing is likely to extend to mortgages in the future.

Can you please elaborate on this what do you mean exactly?


Once an individual is CEmap 1,2,3, qualified does that enable them to give them full advise on all mortgages in the market? How does the broker give advise about all lenders rather than just one or a few.

SteveSilva

I wonder if there are any websites who will help new mortgage advisors to set up shop from an existing estate agent?
One which doesn't immediately charge thousands of pounds.

AndyWallace

Are you CeMAP 1,2 & 3 Qualified - looking to find someone to train you up?

SteveSilva

No Andy I havn't started training yet, but thinking ahead and planning out in advance.
Would you be willing to train qualified people then?

dunstonh

Can you please elaborate on this what do you mean exactly?

Whilst the products the client takes out is a mortgage, they are actually coming to you for advice. They can get many mortgages direct without using you if they wish so the product you are selling is advice.

Advice costs money and currently the most common model is for cost of advice to be built into products. However, today the FSA have issued its retail distribution review document which will remove the term IFA and see it replaced with three new types of adviser. This currently is only on investment class business but it gives you an indication of where regulation and compliance is going. One of the big issues of the change is that cost of advice will be agreed up front for the top level adviser. It will not be built into the product. Lower levels of advisers can have it built into the product still. So, you can see where things are heading in the future.

Once an individual is CEmap 1,2,3, qualified does that enable them to give them full advise on all mortgages in the market?

No. They have to become FSA authorised and meet the requirements of that. This usually means joining an existing firm.

How does the broker give advise about all lenders rather than just one or a few.

Depends on the company you join. You will be stuck with their level of authorisation.

AndrewSmith

What makes a good mortgage broker?

Keep things simple
Don't promise what you cant deliver
Get back to clients when or before you tell them you will
Don't hide anything from clients, always tell them what's going on even if it's bad news
Be honest and tell the client the way it is as opposed to what they may want to hear
Remember the client is how you earn your income, treat them as such
Study the market well and have confidence in your knowledge
Get in touch with like minded brokers and share best practice ideas

Just a few thoughts that spring to mind, doubtless there will be others along shortly.

dunstonh

Having read more about RDR this afternoon, I wouldnt want to be coming into the industry at this time unless you work for a bank.

The whole proposal is pro banks and against smaller companies. It will be possible for Banks to be able to use the term independent even if they sell products from one provider only. It is going to kill off a load of small independent firms as well as whilst there will be a temporary "general adviser" level, this is only to allow a period of transition. Then you will end up with simple or professional. Simple will be flow chart advice using a limited range of products and professional will be chartered advisers of high qualifications. Nothing in between.

The FSA have even admitted that middle earners (which they class as £20-£50k a year earnings) will be likely to be worse off under the new proposals.

Sorry, I am sort of hijacking your thread a bit but anyone in the industry or coming into the industry needs to be aware of the changes.

UK007BullDog

Yes, I have read about the new RDR and its turning my hair grey. I cannot believe this. It means the advisers working without a bank setup will have to study up and become chartered which means no more free advice in my books as far as I can see. Well, this means I will have to continue studying after I have my Cefa and do the advanced and then look at the route to become chartered.

The people losing out are those who cannot afford to pay fees so have to either do the mortgage hunt themselves and risk chosing the wrong product and damaging their credit files or go directly to the high street lenders.

OP: there are lots of threads here from people who started out just like you. do a search on cemap and training. just a month or so we had quite a bit of discussion here about new starters and people studying for cemap.