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Mortgage adviser's salary and comission. How does it works?

Sorry for posting it in to this thread, but I feel this is the best place for a mortgage advisers to read my post.

I have previously worked at the bank as a mortgage adviser but looking to become a broker now.

Juts want to get a basic understanding of how does pay for employed mortgage brokers works.
I know there are a few bits there such as salary validation but don't understand how this works.
Also different firms would pay a different percentage of the sales comission to the advisers but again I could not tell if what the firm offers is a good deal for an employee broker. Eg if their comission was good or bad so it would be great if some one told me eg. anything around 30% is good and anything around 5% is poor.

Also if there are any other specific things to look for in the contracts?

Really appreciate your time and advice on this.

Comments

  • ACG
    ACG Posts: 24,008 Forumite
    Part of the Furniture 10,000 Posts Name Dropper I've helped Parliament
    It will depend on the firm.
    You can probably expect a wage between £25-35k and then around 20% of anything above £60-80k.

    But every firm is different, you may be able to sacrifice some of the wage and get a bigger cut of commission with some companies. Or you could just go completely self employed and get around 50-70% of whatever you write.
    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.
  • But what are the things to look out for in a contract? How do I tell if what is on offer is a good or bad deal to me?
  • dunstonh
    dunstonh Posts: 117,905 Forumite
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    You can probably expect a wage between £25-35k and then around 20% of anything above £60-80k.

    However, most mortgage advisers earn under £20k.
    You would expect more experienced brokers to earn more. Perhaps those in areas of better property values too and those that fall into the roll easier than others and work for it.

    Over half of new advisers leave within two years as they cannot make a success of it.

    Our mortgage brokers get no salary. They pay the firm a fixed monthly amount and the firm takes 20% of what they earn if they generate it and 50% if we provide them the client.
    I would think a salary would be unusual unless the commission cut if heavily in favour of the firm.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • amnblog
    amnblog Posts: 12,589 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    Salary validation is where you are paid an agreed income but you need to maintain a level of business completed to 'validate' it.

    Failure to maintain business levels may lead to a reduced income, or loss of the role.

    Firms employing brokers and supplying them with business have a high cost base, so you may for example be expected to generate £2,000 a week in fees and commission to 'validate' a salary of £30,000 or less.

    Part of the trick is decide the type of role you seek. More security but less earning potential, or maximum earning potential with minimal security.
    I am a Mortgage Broker

    You should note that this site doesn't check my status as a Mortgage Broker, 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.
  • ACG
    ACG Posts: 24,008 Forumite
    Part of the Furniture 10,000 Posts Name Dropper I've helped Parliament
    But what are the things to look out for in a contract? How do I tell if what is on offer is a good or bad deal to me?
    That is in the eye of the beholder.
    How would you determine any job offer is good or not?
    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.
  • glosoli
    glosoli Posts: 739 Forumite
    Eighth Anniversary 500 Posts Combo Breaker
    A ex-colleague of mine left our organisation to work in a brokers firm, and she said the main difference in her new place compared to the bank was the targets she was expected to achieve (I think around £3,000 proc fees per week), and how difficult this was as all the quality cases went to the experienced guys and the leads she was provided never really went anywhere. I guess it can be difficult during the first year or so whilst building up a base.
  • Mishomeister
    Mishomeister Posts: 1,062 Forumite
    Part of the Furniture 500 Posts Combo Breaker
    What I am really trying to understand whast percentage of the comission awarded to an employed adviser would be classed as good, awerage and poor as those wary from employer to employer.
    Eg. if some ones basic was 20k and comission was 20% is a good deal. But some ones 30K basic with 5% comission is a poor deal.
    There is no benchmark to compare to hence the reason I created this post.
  • kingstreet
    kingstreet Posts: 38,970 Forumite
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    I think you'll find most of us on here earn no salary, so unless we suddenly get an influx of employed brokers, you aren't going to get the cross-section you seek.

    The broker forum Cherry might be a better bet;-

    http://www.cherryplc.co.uk/forum
    I am a mortgage broker. 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. Please do not send PMs asking for one-to-one-advice, or representation.
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