Becoming a Mortgage Advisor / Broker

scoops82

Hi


I have asked a couple of questions on here before as I keep thinking of a career change into becoming a mortgage broker.


I am currently an assistant accountant and will have a max salary of about £28k unless I become a fully qualified accountant but I'm not sure that what I want to do. So I have a couple of questions for anyone who is willing to help. I am based in the West Midlands in case that help?


Is doing CeMap in my spare time something that I could do while still working in my current role?
If I got my qualification is there anything actually stopping me starting on my own while I continue my current job until I have more work or do you need to have had previous experience in other roles beforehand - if so what kind of salary would be reasonable and how long would I take to reach my £28k that im on now?


As much as I would like to do this, how realistic is it that I could as I could only afford a drop in salary while getting up to speed for a certain amount of time.


Any advice is welcome?
Thanks in advance
S

stephenni1971

If you are an assistant Accountant then CeMap shouldn't give you too much bother.

Once you have the qualification though you will really need to join an established firm as you wont really have a clue how the practicalities work.

You'll see most mortgage brokers are part of a network where they do the regulatory and compliance side along with handling proc fees coming in from lenders and leaves you to do the advising part - they will take a fee and/or %age of your income for doing this. Networks will usally want someone who has reached Competent Adviser Status ( CAS ) which shows that you are able to work unsupervised and with minimal support. Been a while since I started but when I did no network would take me as they wanted people ready to hit the ground running so to speak. Once I got CAS at my first firm I had plenty of options.

Most people usually cut their teeth working for someone else and once they have the required experience move out on their own.

You also have to think about where you will get clients - this bit is much harder than getting qualified. And don't think working in a big firm that it looks easy - most of them will have spent years and a lot of money building up their client bank. Find a niche, adverse, new build, BTL, self employed - then you can market yourself as an expert in that area rather than just being a generalist.

scoops82

Thanks - that's really helpful.


If I was to get Cemap and then look at CAS - how do I get that? How many years experience is required and what kind of salary do you think would be paid while trying to attain the CAS? I need to know if its something I can afford to do. I`m concerned that after getting the qualification I would have to drop to something like £15k while I get the experience - which is okay as long as its not 5 years at that rate.


Once I have CAS am I likely to better the £28k I am currently on? I`m not fussed about earning mega bucks as long as I enjoy it but I wouldn't want to start it if I am never going to earn at least the same.

ACG

I think Stephen covers a lot of it off.
I went self employed 2 years ago (this month), although I have been an advisor for 4 years.

Networks I do not think will take you on without CAS, so you would need to find a broker who will take you on - at least initially.

However I have tried doing a full time job and being a broker, you can not do it for long unless you are only doing 1-2 cases a month. I cant see any network or broker wanting to take you on for so little business.

I love my job, but it is a lot ore stressful than I expected. I was being tested for high blood pressure this time last year (im 30!). I had to look at how I did things and this year I have actually earned more and enjoyed it where as last year it just felt like pressure.

Trying to do this and a full time job - rather you than me, but I think you could burn yourself out.

TrickyDicky101

Also, consider how flexible your current career is versus being a mortgage broker.

With accountancy, you can work in just about any industry. Mortgage broking is much more focused. Perhaps a change of industry might be an option rather than dropping the accountancy altogether?

I am an accountant and it literally took me 14 years from when I started to get to a job I enjoyed. But I really do appreciate the fact I could, if required, leave financial services and work in a Housing Association/for Local Government/Charity/local Manufacturer etc without much trouble (let's face it, the debits and credits are all the same, just with different numbers). Don't underestimate the value of this flexibility.

scoops82

Thanks for your replies.


I am 33 and have full head of grey hair already! Im AAT Qualified and I have passed 2 of the first years CIMA exams but im not sure my heart is in it. The issue I have is without being fully qualified I will never earn more than what I do now and in currently in Research Finance and I find it so very dull. I have also worked for Universities, NHS and local government so the private sector seem quite reluctant to take people like myself on - this could change if I become fully qualified.


Assuming I had my Cemap - how long would it take to become CAS and what salary can I expect while doing so?


Once im in with a firm - could I expect to earn £28k plus pa? How much is basic / commission?


I hadn't thought about the stress side fit to be honest - its just a sector I find very interesting and I like finding the bets deals - either for myself or others.

ACG

CAS varies from company to company and network to network.
My first network had me up and running after 6 cases (it would have been 5 but I messed up on one of them). My second network it took around 6 months.

jacobtheamish

A lot of brokers start off with an Estate Agency, attain CAS status and then move on to a more professional firm with better earning potential and a damn sight more peer respect ;-)

Pretty much everything you hear on these boards about EA Brokers is true, but its good training and will get you where you want to be. You should earn more than your current salary in your first year, with many brokers well over that by their second. Although I'm down south so may not be so lucrative in the midlands.

Whenever I'm asked what time do I start and finish, I always reply with "when I wake up and fall asleep". Its no 9 to 5 job, well for the good ones its not anyway.

Good luck

stephenni1971

Like anything its a numbers game...

Typical lender will pay a proc fee of 0.35%. So your gross on a 100k mortgage is 350. Your network will take a cut so you could expect to clear £280 or so per 100k.

Your network trainers will say for every mortgage you should be pushing buildings & contents, life cover etc to increase your turnover.

I offer these things but dont push them. Thats why I get tons of referrals because there is no hard sell. I get lots of clients come over to me from other prokers who arrange a£300pm mortgage and then try and push £100pm in protection.

You can charge a fee for your arranging to - payable on top of the procuration fee from the lender. This helps sort out those who are serious but the other side is it can act as a deterrent to people who would go to a no fee broker or their bank.

There are many potential business models, if you were down in Suffolk, Hampshire etc your average case size will be higher therefore for the same number of cases you can earn much more than in areas where house prices are low.

minimike2

Most of the networks now are also not interested in "One man bands" unless you expect to turnover at least £100k.

I can count the number of networks who would look at someone new to market on one hand and still have plenty of fingers left.

As others have said - If broking is what you want to start out with then look to become a Registered Individual of another firm and work along side someone established. You could also consider working on a tied basis for a lender whilst you got up and running to "learn the ropes" and give you a guaranteed income, which could better position you if you looked to move to broking further on down the line.

There is always the DA route, but as someone new to it I really wouldn't advise you go it alone in that manner.

amnblog

Think very carefully if you are halfway to CIMA.

Remember that being a self employed mortgage broker is at least as much a sales job as an advisory job. Borrowers have numerous options and if you do not convince them to deal with you, you don't earn.