Achieving CAS status to become mortgage advisor

TJS1688

Hi Folks,


Whilst not confident this is possible, I am hoping for some advice on the feasibility of achieving CAS status on a part time basis.


To give some context, I am in full time employment in a role that pays well but is beginning to offer little fufillment. I have been exploring a career as a mortgage advisor (i am a qualified accountant so quite numerical and able to translate this to customers) but realistically would be unable to afford the reduction in salary to fund this change. As a result, I had been researching the practicality of doing some advisory on a part time basis with a view to changing roles should it turn out to be successful.


Achieving the CeMAP qualifications appears to be the easy bit whereas achieving CAS status appears much harder and a pre-requisite for either joining a network or becoming directly authorised. Does anyone have any ideas for how this might achieved?

[Deleted User]

Look at the bigger corporate companies to cut your teeth in. Some allow you to do part time working and offer a lot more support than smaller companies. Be careful with expectations though, if you start out thinking becoming qualified is the easy bit you might get a nasty surprise.
Trying to learn all that whilst holding down a job and a life isnt as easy as it sounds. I did mine between jobs when i was made redundant from a bank, I had tried to do it previously whilst working and couldnt find the time.

Once you are started you have 50+ lenders criteria to learn, numerous insurance products, and probably a fair few training courses to go on. Even now, many years in I do some horrific hours some weeks (but others I barely do any). You have to be adaptable to the business demand. Thats why you will struggle to do it around another job (even if you are allowed)


Some of the bigger companies offer salaries and commission guarantees to get you started. The first job i had was an ok basic salary and a guaranteed 1k a month commission for first 6months. I wasnt eating steak but it was enough to get by.

ACG

I have 2 thoughts on this for you:
1) Chances are it is going to take a long time before you earning close to what you are earning as an accountant.
2) You are an accountant so have a lead source there.

If you are prepared to do long days and in a position where you could do the 2 jobs side by side, I would try and find a company who will allow you to work on a self employed basis as a broker. It will be hard work though, just in terms of hours. Both jobs are quite time consuming and stressful, mentally you are probably going to feel it.

SonOf

To give some context, I am in full time employment in a role that pays well but is beginning to offer little fufillment. I have been exploring a career as a mortgage advisor (i am a qualified accountant so quite numerical and able to translate this to customers) but realistically would be unable to afford the reduction in salary to fund this change. As a result, I had been researching the practicality of doing some advisory on a part time basis with a view to changing roles should it turn out to be successful.

It is very hard to do two jobs at the same time. If you are doing a mortgage and there is a snag that needs urgent sorting out, will your current employer be happy with you doing that during their working hours? (and when speaking with lenders or estate agents you will likely need to contact them during working hours).
If not, will your client be happy to wait until you can do it? (and with mortgages, people are anxious and often want answers quickly)

If a meeting is called for a compliance visit from the network or you need to go for a training session, will your employer give you time off to do that?

It is unlikely a mortgage adviser will earn the same as an accountant. Typically you would need to be an IFA to do that. (although some experienced mortgage brokers can earn more with a lot of effort).

MortgageMamma

I dispute the earnings information, a lot of the time brokers can make more than accountants, and an accountant has to know his client as well as a broker would so the transition shouldn't be too difficult.

There is a firm called NewLeaf who will get you through your exams and to CAS status. In fact you don't have to stop as a mortgage broker, go for your full Diploma in Financial Planning and then progress to Chartered Status as soon as possible. Newleaf can help you achieve that. I am not connected with them in any way but I know several advisers that have done this with happy outcomes.

Regarding doing the two jobs simultaneously, seriously it will fry your brain and leave you so stressed - you are best not to consider that.

Could you not raise some finance on your property or get a career development loan or something to help fund the qualification and tide you over until you have CAS status?

Feel free to inbox me if you want any guidance or putting in touch with other forums full of brokers who may be able to offer you employment of some sort.

Here is the link to the company I'd recommend https://www.newleafdistribution.co.uk/

TJS1688

Thanks all.


I should caveat it that although an accountant I don't work in pure finance but more general management. In terms of salary expectations, I had been led to believe (from other advisors working within independant brokers) that whilst a starting salary of circa £20-30k might be the case, there were advisors within the same firm who, with a lot of hard work, were earning anywhere from £60k-£90k. Does that sound realistic?


I do acknowledge the challenges of working two jobs albeit perhaps not to the extent that I need to.


I had been looking for firms or self employed roles that might allow me to work on a self employed basis but the feedback i'd had was that a pre-requisite would be having CAS status? If anyone knows of any firms where this might not be the case, i'd gratefully recieve them.


MortgageMamma - thank you, your post was really helpful. I will follow up under seperate cover with you.

ACG

You would probably be able to work towards CAS with another firm on a part time basis.

I took a lady on earlier this year who is working towards obtaining CAS at the minute whilst working a job part time - and a single mum!

If you are doing it self employed, you are probably not going to earn £20k in year one, possibly year 2 but maybe not. My first year, I think I made about £12k, year 2 was about £15k - it started going up after that.

Earning £90k in the mortgage industry will likely send you under. To put it in to context, my highest earning month was about £11,000 but I took the following month off because I was stressed out... so actually £5,500 when you average out. £60k is achievable, but unlikely to be anywhere close to that for maybe 4 years+ you need to build up a customer base and go from there.

Also, were they earning £60-90k or writing that?
Whatever you write, you have outgoings. Costs to the firm or network. If you are directly authorised then you have compliance costs, insurance, IT, marketing, Regulatory fees, admin and so on... you will know more than me what expenses businesses have.

SonOf

I dispute the earnings information, a lot of the time brokers can make more than accountants, and an accountant has to know his client as well as a broker would so the transition shouldn't be too difficult.

Most of the accountants I know are on 6 digits or close to. The book keeper types are much lower.

I had been led to believe (from other advisors working within independant brokers) that whilst a starting salary of circa £20-30k might be the case, there were advisors within the same firm who, with a lot of hard work, were earning anywhere from £60k-£90k. Does that sound realistic?

No, that does not sound realistic. There will certainly be mortgage brokers out there earning that sort of amount. However, around half of new advisers leave within 2 years due to lack of earnings. Experienced advisers with a good work ethic and good client flow could get £60k. 90k consistently would need assistants.

You also have to consider your location. If you are London, then you can do one mortgage for every 4 or 5 that the rest of the UK has to do to earn the same amount.

Whilst most IFAs no longer personally do mortgages, some do, so be wary of using their earnings as a guide as their income will also include investment class which you cannot do. Many mortgage brokers not working for an IFA will have a local arrangement with an IFA to pass investment class referrals over. That gives additional potential income.

[Deleted User]

I have worked with plenty of advisors who were on 6 figures but they were estate agency based with 10 appointments a week, 3 or 4 sign ups a week with expensive insurance abd admin support provided by the company. They were writing over 200k a year and earning about 100k.

The vast majority in those kind of places will be earning about 35-45k I reckon.

Coming out and working on your own relies on lead sources and work ethic. You can either continue to see as many people as possible and earn crazy money, or more likely you realise this burns you out eventually and you drop to a reasonable level of income and reasonable hours.

I probably could earn a lot more than I do, but I only work about 1/3rd of what I did in estate agency environment.

I suppose the point here is that earnings estimates are really hard to do since everyone has a vastly different business model. 1 person might be claiming 100k but the hours and stress isnt mentioned with that.

From my own experience of doing mortgages for a few accountants I would expect earnings to be roughly similar in the professions. Anywhere from 40-60k really

SonOf

I have worked with plenty of advisors who were on 6 figures but they were estate agency based with 10 appointments a week, 3 or 4 sign ups a week with expensive insurance abd admin support provided by the company. They were writing over 200k a year and earning about 100k.

For £100k of mortgage proc fee income, our mortgage advisers would have to arrange around 250 mortgages a year. I suspect this where regional differences in house prices will come into play.

[Deleted User]

SonOf wrote: »

For £100k of mortgage proc fee income, our mortgage advisers would have to arrange around 250 mortgages a year. I suspect this where regional differences in house prices will come into play.

Probably, I'm looking at 250k for a 2bed ftb house down here so when factoring insurance and broker fee takes average case size to around 2k.