Wanting to be a mortgage broker

welnik

I'm really interested in utilising my CeMAP qualification which I have gained through working as an underwriter. I am to be made redundant and have today visited an IFA who has said I can work for them on a self employed basis.

Any brokers out there that would be willing to give me some advice? I would have to get my own leads and would probably start off by advertising in the local paper until I build up a reputation. I would get a proportion of the proc fee. I will receive a years salary from my redundancy and will probably work weekends doing something else to earn some pennies.

Im thinking that the mortgage side of things is a side of finance that IFA's find quite labour intensive for little reward so I am wondering whether to target IFAs that would pass on a lead for part of the procuration fee on completion.

The IFA I saw today is going to help me with setting up and advertising etc and he is going to put a contract together for me to look over.

Any help greatly appreciated.

payless

what what level of % the IFA keeps, his regulatory costs liekly won't be that much higher taking on a self employed mortgage writer ( unless not currently regulated for mortgages himself).. the % cut should reflect his leads/ office as well.

Although he will take responsibility for business written!!

where abouts are you ( I'm in Sutton Coldfield)

Not sure local paer will get that much biz

ou are right about some IFAs not liking mortgages, but found many don't want to "give up control"

have you tried getting a position with a local estate agency or mortgage broker.. to get some leads ( usually at a high cost % wise) but to give steady stream / experience

Dan_Collins_2

My advice would be to employed with a estate agent chain to get used to having more than one lender, then when you have a client bank to take with you (Keep that but to your self) go for the self employed position. It is a tough market out here at the mo and less leads to share around!

Make sure you dont give up to much commission and make sure you will get your moneys worth out of what you give up!

welnik

Thanks for that. To be honest, the job I do at the moment means I have to pay out loads of money each month in childcare. I'm thinking if I get something in the evenings to start with whilst I build up my business I would probably earn as much as I do now and then if I do sign up a case, its all extra.

Im wondering whether to ring round/visit estate agents and perhaps take on the cases where they are having problems getting loans due to adverse. It seems to be where the money is. I would only need one a month to pull in what I get now to be honest.

The IFA is drawing something up for me to look over and Im going to take a view when I see it.

regards
Wel

Conrad

Wel it's by far the quietest time I've ever known and I've been in the business since 1991, and luckily have always been a high earner. Now most thinking brokers and packagers are resolved to a potential 50% business reduction until the current market uncertainty pases.

I have several EA's feed into me, not that I need them as I have a large high street shop but I have to say they are'nt selling any houses. Adverse credit has always been the most attractive area for me, but it's very very competetive. You'll need to be very quick on your toes and crucially you need to think right outside the box. One of the worst features now is that you'll be up against people who are prepared to do anything to get a deal through, the sort that obtain payslips etc.

At the same time the criteria squeeze has had a fairly dramatic effect meaning many potential clients are now pushed outside the lending loop.
Furthermore the credit squeze means investors want much higher returns which at the moment the public are'nt able / prepared to pay for.

So in summary a very difficult time to be getting in, but some say it's best to start when there's blood on the streets!
One things for sure; In the last really tough enviroment (late 80s to early 90s) a lot of agents and brokers went out of business. Im sure many of us recall the likes of Winterthur opening up a Haart branch every day, or Pru buying thousands of EAs or the flash harrys with big block phones and Porches. Well they are the sort who will really suffer right now. It's all about having margin and being able to survive these downturns.

On the positive front I've enjoyed a very comfortable living standard, but not without stress and a lot of hard work.