Mortgage advisor - commission for selling mortgages and insurance??

ACG

Dillon141 said:

kingstreet said:

We are members of a network and our mortgage business also passes through L&G mortgage club. As an example, a gross procuration fee of 0.4% would see 0.37% paid to our network. Our network and other costs come out of that.

On Life/CI etc the commission rate we receive will be the same regardless of the premium. Some tied agents charge higher premiums and will receive both higher rates (due to the tie) and higher amounts (due to the premium size). We also have the option of taking commission as a lump sum (indemnity terms) or spread over the 48 month initial period (on the drip) and many of us take commission on the drip on large cases so we avoid large clawbacks if the cover is cancelled or lapses in that 48 month period.

Let me get this correct.....

If you arrange a mortgage of £200,000, the commission at 0.4% would be £800, but the network get 0.37% of this 0.4%? They get £740?   I'm wrong right?  How much do you actually get in your own hand after the Network takes it's share?


EDIT -- Ahh the Network gets the 0.4% and you receive 0.37% - correct?

The edit bit is right more or less. The mortgage club get the £60 in your example. The network would take around 15% of the £740 (£110), so of the £800, the broker would get around £630. Assuming self employed running their own business. If not then the principle will also take a cut.

Dillon141

ACG said:

Dillon141 said:

kingstreet said:

We are members of a network and our mortgage business also passes through L&G mortgage club. As an example, a gross procuration fee of 0.4% would see 0.37% paid to our network. Our network and other costs come out of that.

On Life/CI etc the commission rate we receive will be the same regardless of the premium. Some tied agents charge higher premiums and will receive both higher rates (due to the tie) and higher amounts (due to the premium size). We also have the option of taking commission as a lump sum (indemnity terms) or spread over the 48 month initial period (on the drip) and many of us take commission on the drip on large cases so we avoid large clawbacks if the cover is cancelled or lapses in that 48 month period.

Let me get this correct.....

If you arrange a mortgage of £200,000, the commission at 0.4% would be £800, but the network get 0.37% of this 0.4%? They get £740?   I'm wrong right?  How much do you actually get in your own hand after the Network takes it's share?


EDIT -- Ahh the Network gets the 0.4% and you receive 0.37% - correct?

The edit bit is right more or less. The mortgage club get the £60 in your example. The network would take around 15% of the £740 (£110), so of the £800, the broker would get around £630. Assuming self employed running their own business. If not then the principle will also take a cut.

Ah yes, this makes more sense - thank you.

I suppose what I'm really trying to find the answer to here is... is it worth me studying CeMap and becoming a mortgage advisor?

I am an accountant in a firm with around 250+ clients.  There have been at around 15 in the last 2 years who have mentioned that they need a mortgage or need to re-mortgage.  Because of this and wondering how many others who have not mentioned it to us, I have wondered if I could build a client base for Mortgages from these existing clients.  This would be an extra income stream and possibly a way of diverging into mortgages full time in the future.

If I did this and joined someone like Primis, can you see this working as far as the commission I would receive?

Thanks.

Neilos9

so you want to be a part time mortgage advisor - as an additional income stream - doubt Primus or anyone would be interested as the number of mortgages you did would be far to small for the compliance involved.  Maybe another broker may take you under wing, but unsure how you could manage the work, research, chasing lenders part time...

ACG

Dillon141 said:

ACG said:

Dillon141 said:

kingstreet said:

We are members of a network and our mortgage business also passes through L&G mortgage club. As an example, a gross procuration fee of 0.4% would see 0.37% paid to our network. Our network and other costs come out of that.

On Life/CI etc the commission rate we receive will be the same regardless of the premium. Some tied agents charge higher premiums and will receive both higher rates (due to the tie) and higher amounts (due to the premium size). We also have the option of taking commission as a lump sum (indemnity terms) or spread over the 48 month initial period (on the drip) and many of us take commission on the drip on large cases so we avoid large clawbacks if the cover is cancelled or lapses in that 48 month period.

Let me get this correct.....

If you arrange a mortgage of £200,000, the commission at 0.4% would be £800, but the network get 0.37% of this 0.4%? They get £740?   I'm wrong right?  How much do you actually get in your own hand after the Network takes it's share?


EDIT -- Ahh the Network gets the 0.4% and you receive 0.37% - correct?

The edit bit is right more or less. The mortgage club get the £60 in your example. The network would take around 15% of the £740 (£110), so of the £800, the broker would get around £630. Assuming self employed running their own business. If not then the principle will also take a cut.

Ah yes, this makes more sense - thank you.

I suppose what I'm really trying to find the answer to here is... is it worth me studying CeMap and becoming a mortgage advisor?

I am an accountant in a firm with around 250+ clients.  There have been at around 15 in the last 2 years who have mentioned that they need a mortgage or need to re-mortgage.  Because of this and wondering how many others who have not mentioned it to us, I have wondered if I could build a client base for Mortgages from these existing clients.  This would be an extra income stream and possibly a way of diverging into mortgages full time in the future.

If I did this and joined someone like Primis, can you see this working as far as the commission I would receive?

Thanks.

Why would you want to go from being an accountant to a mortgage broker? 
Dont get me wrong, I absolutely love my job. But I think if I was smart enough to be an accountant, I would rather be an accountant. You go from dealing with HMRC and customers to dealing with customers, lenders, estate agents, solicitors... That sounds like a lot more places to potentially get grief from. 

Why not bring in a mortgage broker? 

Dillon141

Neilos9 said:

so you want to be a part time mortgage advisor - as an additional income stream - doubt Primus or anyone would be interested as the number of mortgages you did would be far to small for the compliance involved.  Maybe another broker may take you under wing, but unsure how you could manage the work, research, chasing lenders part time...

Not exactly part-time just fit it into my current working day.  It may sound unrealistic to someone who has experience of being a mortgage advisor, hence the reason I'm asking.  

Dillon141

ACG said:

Dillon141 said:

ACG said:

Dillon141 said:

kingstreet said:

We are members of a network and our mortgage business also passes through L&G mortgage club. As an example, a gross procuration fee of 0.4% would see 0.37% paid to our network. Our network and other costs come out of that.

On Life/CI etc the commission rate we receive will be the same regardless of the premium. Some tied agents charge higher premiums and will receive both higher rates (due to the tie) and higher amounts (due to the premium size). We also have the option of taking commission as a lump sum (indemnity terms) or spread over the 48 month initial period (on the drip) and many of us take commission on the drip on large cases so we avoid large clawbacks if the cover is cancelled or lapses in that 48 month period.

Let me get this correct.....

If you arrange a mortgage of £200,000, the commission at 0.4% would be £800, but the network get 0.37% of this 0.4%? They get £740?   I'm wrong right?  How much do you actually get in your own hand after the Network takes it's share?


EDIT -- Ahh the Network gets the 0.4% and you receive 0.37% - correct?

The edit bit is right more or less. The mortgage club get the £60 in your example. The network would take around 15% of the £740 (£110), so of the £800, the broker would get around £630. Assuming self employed running their own business. If not then the principle will also take a cut.

Ah yes, this makes more sense - thank you.

I suppose what I'm really trying to find the answer to here is... is it worth me studying CeMap and becoming a mortgage advisor?

I am an accountant in a firm with around 250+ clients.  There have been at around 15 in the last 2 years who have mentioned that they need a mortgage or need to re-mortgage.  Because of this and wondering how many others who have not mentioned it to us, I have wondered if I could build a client base for Mortgages from these existing clients.  This would be an extra income stream and possibly a way of diverging into mortgages full time in the future.

If I did this and joined someone like Primis, can you see this working as far as the commission I would receive?

Thanks.

Why would you want to go from being an accountant to a mortgage broker? 
Dont get me wrong, I absolutely love my job. But I think if I was smart enough to be an accountant, I would rather be an accountant. You go from dealing with HMRC and customers to dealing with customers, lenders, estate agents, solicitors... That sounds like a lot more places to potentially get grief from. 

Why not bring in a mortgage broker? 

It's a family firm and I'm not that keen on bringing anyone in from the outside.  I was just wondering if it was do-able to fit it in to my working day.

The volume at our office is fairly heavy and maybe my idea is non-sensical but eventually I may look to transition away from the accountant side of things and go full-on as a mortgage advisor if it took off.  There is a surprising amount of stress and grief from the accountancy work - I was hopeful the mortgage side of things may be "simpler" (forgive me for sounding like I'm looking down my nose at mortgage brokers - I'm really not).  What I mean is, as an accountant we are fighting on all fronts, Tax, PAYE, Corporation Tax, Inheritance Tax, Capital Gains, phone calls from clients about all-sorts (the old agony uncle routine- some people seem to need life guidance about things you don't deal with -we practice in a rural area and clients are more like friends than just clients) and to top it off, up to 40 minute wait times when ringing HMRC! The joy!

I was hoping that concentrating on ONE thing such as Mortgage advice would give a clearer focus instead of this jumping around from one subject to the next.  Although I have no doubt it is very demanding, I have no doubt.

Maybe I am after a career change and as I like property I may be getting carried away.

Maybe we should just hire more staff for the accountancy side to ease the burden and raise prices drastically.  Clients would love that right. LOL

ChemistDude

ACG said:

Dillon141 said:

ACG said:

Dillon141 said:

kingstreet said:

We are members of a network and our mortgage business also passes through L&G mortgage club. As an example, a gross procuration fee of 0.4% would see 0.37% paid to our network. Our network and other costs come out of that.

On Life/CI etc the commission rate we receive will be the same regardless of the premium. Some tied agents charge higher premiums and will receive both higher rates (due to the tie) and higher amounts (due to the premium size). We also have the option of taking commission as a lump sum (indemnity terms) or spread over the 48 month initial period (on the drip) and many of us take commission on the drip on large cases so we avoid large clawbacks if the cover is cancelled or lapses in that 48 month period.

Let me get this correct.....

If you arrange a mortgage of £200,000, the commission at 0.4% would be £800, but the network get 0.37% of this 0.4%? They get £740?   I'm wrong right?  How much do you actually get in your own hand after the Network takes it's share?


EDIT -- Ahh the Network gets the 0.4% and you receive 0.37% - correct?

The edit bit is right more or less. The mortgage club get the £60 in your example. The network would take around 15% of the £740 (£110), so of the £800, the broker would get around £630. Assuming self employed running their own business. If not then the principle will also take a cut.

Ah yes, this makes more sense - thank you.

I suppose what I'm really trying to find the answer to here is... is it worth me studying CeMap and becoming a mortgage advisor?

I am an accountant in a firm with around 250+ clients.  There have been at around 15 in the last 2 years who have mentioned that they need a mortgage or need to re-mortgage.  Because of this and wondering how many others who have not mentioned it to us, I have wondered if I could build a client base for Mortgages from these existing clients.  This would be an extra income stream and possibly a way of diverging into mortgages full time in the future.

If I did this and joined someone like Primis, can you see this working as far as the commission I would receive?

Thanks.

Why would you want to go from being an accountant to a mortgage broker? 
Dont get me wrong, I absolutely love my job. But I think if I was smart enough to be an accountant, I would rather be an accountant. You go from dealing with HMRC and customers to dealing with customers, lenders, estate agents, solicitors... That sounds like a lot more places to potentially get grief from. 

Why not bring in a mortgage broker? 

My broker is an ex-accountant who worked at one of the big 4. He tells me he has more work-life balance and earns more in his current role. He likes being able to work from home too as it helps with other commitments.

Dillon141

ChemistDude said:

ACG said:

Dillon141 said:

ACG said:

Dillon141 said:

kingstreet said:

We are members of a network and our mortgage business also passes through L&G mortgage club. As an example, a gross procuration fee of 0.4% would see 0.37% paid to our network. Our network and other costs come out of that.

On Life/CI etc the commission rate we receive will be the same regardless of the premium. Some tied agents charge higher premiums and will receive both higher rates (due to the tie) and higher amounts (due to the premium size). We also have the option of taking commission as a lump sum (indemnity terms) or spread over the 48 month initial period (on the drip) and many of us take commission on the drip on large cases so we avoid large clawbacks if the cover is cancelled or lapses in that 48 month period.

Let me get this correct.....

If you arrange a mortgage of £200,000, the commission at 0.4% would be £800, but the network get 0.37% of this 0.4%? They get £740?   I'm wrong right?  How much do you actually get in your own hand after the Network takes it's share?


EDIT -- Ahh the Network gets the 0.4% and you receive 0.37% - correct?

The edit bit is right more or less. The mortgage club get the £60 in your example. The network would take around 15% of the £740 (£110), so of the £800, the broker would get around £630. Assuming self employed running their own business. If not then the principle will also take a cut.

Ah yes, this makes more sense - thank you.

I suppose what I'm really trying to find the answer to here is... is it worth me studying CeMap and becoming a mortgage advisor?

I am an accountant in a firm with around 250+ clients.  There have been at around 15 in the last 2 years who have mentioned that they need a mortgage or need to re-mortgage.  Because of this and wondering how many others who have not mentioned it to us, I have wondered if I could build a client base for Mortgages from these existing clients.  This would be an extra income stream and possibly a way of diverging into mortgages full time in the future.

If I did this and joined someone like Primis, can you see this working as far as the commission I would receive?

Thanks.

Why would you want to go from being an accountant to a mortgage broker? 
Dont get me wrong, I absolutely love my job. But I think if I was smart enough to be an accountant, I would rather be an accountant. You go from dealing with HMRC and customers to dealing with customers, lenders, estate agents, solicitors... That sounds like a lot more places to potentially get grief from. 

Why not bring in a mortgage broker? 

My broker is an ex-accountant who worked at one of the big 4. He tells me he has more work-life balance and earns more in his current role. He likes being able to work from home too as it helps with other commitments.

This is exactly why I am considering an attempt to qualify as CeMap and start it alongside my current accountant role.  A view to looking for something else in the future is starting to feel appealing given the current work load.

Also, yes I know of a few accountants who have transitioned to doing this and one said "much better". We shall see.  The volume and the extra costs of needing new software due to the Making Tax Digital push by the government is becoming a bit much. Computers are suppose to free up time.  I rather find that they distract you to sit in front of the screen for so many hours that you struggle to keep up with the other things like actually talking to clients.  

ACG

Dillon141 said:

ACG said:

Dillon141 said:

ACG said:

Dillon141 said:

kingstreet said:

We are members of a network and our mortgage business also passes through L&G mortgage club. As an example, a gross procuration fee of 0.4% would see 0.37% paid to our network. Our network and other costs come out of that.

On Life/CI etc the commission rate we receive will be the same regardless of the premium. Some tied agents charge higher premiums and will receive both higher rates (due to the tie) and higher amounts (due to the premium size). We also have the option of taking commission as a lump sum (indemnity terms) or spread over the 48 month initial period (on the drip) and many of us take commission on the drip on large cases so we avoid large clawbacks if the cover is cancelled or lapses in that 48 month period.

Let me get this correct.....

If you arrange a mortgage of £200,000, the commission at 0.4% would be £800, but the network get 0.37% of this 0.4%? They get £740?   I'm wrong right?  How much do you actually get in your own hand after the Network takes it's share?


EDIT -- Ahh the Network gets the 0.4% and you receive 0.37% - correct?

The edit bit is right more or less. The mortgage club get the £60 in your example. The network would take around 15% of the £740 (£110), so of the £800, the broker would get around £630. Assuming self employed running their own business. If not then the principle will also take a cut.

Ah yes, this makes more sense - thank you.

I suppose what I'm really trying to find the answer to here is... is it worth me studying CeMap and becoming a mortgage advisor?

I am an accountant in a firm with around 250+ clients.  There have been at around 15 in the last 2 years who have mentioned that they need a mortgage or need to re-mortgage.  Because of this and wondering how many others who have not mentioned it to us, I have wondered if I could build a client base for Mortgages from these existing clients.  This would be an extra income stream and possibly a way of diverging into mortgages full time in the future.

If I did this and joined someone like Primis, can you see this working as far as the commission I would receive?

Thanks.

Why would you want to go from being an accountant to a mortgage broker? 
Dont get me wrong, I absolutely love my job. But I think if I was smart enough to be an accountant, I would rather be an accountant. You go from dealing with HMRC and customers to dealing with customers, lenders, estate agents, solicitors... That sounds like a lot more places to potentially get grief from. 

Why not bring in a mortgage broker? 

It's a family firm and I'm not that keen on bringing anyone in from the outside.  I was just wondering if it was do-able to fit it in to my working day.

The volume at our office is fairly heavy and maybe my idea is non-sensical but eventually I may look to transition away from the accountant side of things and go full-on as a mortgage advisor if it took off.  There is a surprising amount of stress and grief from the accountancy work - I was hopeful the mortgage side of things may be "simpler" (forgive me for sounding like I'm looking down my nose at mortgage brokers - I'm really not).  What I mean is, as an accountant we are fighting on all fronts, Tax, PAYE, Corporation Tax, Inheritance Tax, Capital Gains, phone calls from clients about all-sorts (the old agony uncle routine- some people seem to need life guidance about things you don't deal with -we practice in a rural area and clients are more like friends than just clients) and to top it off, up to 40 minute wait times when ringing HMRC! The joy!

I was hoping that concentrating on ONE thing such as Mortgage advice would give a clearer focus instead of this jumping around from one subject to the next.  Although I have no doubt it is very demanding, I have no doubt.

Maybe I am after a career change and as I like property I may be getting carried away.

Maybe we should just hire more staff for the accountancy side to ease the burden and raise prices drastically.  Clients would love that right. LOL

Only 40 minutes? :P
Try an hour plus to lenders. Imagine needing to get hold of 2 or 3 of them a day. 

I think it is potentially a different kind of stress. I dont mean this to sound corny, but you sort of have peoples lives on your shoulders. First time buyer wanting to get a home, the weight of that can be huge. Imagine there is a problem or something goes wrong, it is quite hard to switch that off at 5pm - thankfully it does not happen often but it does happen. Usually it can be placed with another lender but at times it cant. 

I dont think it is a job you can do around another job in the main, but I suppose being self employed in the office it might be possible. 

Dillon141

ACG said:

Dillon141 said:

ACG said:

Dillon141 said:

ACG said:

Dillon141 said:

kingstreet said:

We are members of a network and our mortgage business also passes through L&G mortgage club. As an example, a gross procuration fee of 0.4% would see 0.37% paid to our network. Our network and other costs come out of that.

On Life/CI etc the commission rate we receive will be the same regardless of the premium. Some tied agents charge higher premiums and will receive both higher rates (due to the tie) and higher amounts (due to the premium size). We also have the option of taking commission as a lump sum (indemnity terms) or spread over the 48 month initial period (on the drip) and many of us take commission on the drip on large cases so we avoid large clawbacks if the cover is cancelled or lapses in that 48 month period.

Let me get this correct.....

If you arrange a mortgage of £200,000, the commission at 0.4% would be £800, but the network get 0.37% of this 0.4%? They get £740?   I'm wrong right?  How much do you actually get in your own hand after the Network takes it's share?


EDIT -- Ahh the Network gets the 0.4% and you receive 0.37% - correct?

The edit bit is right more or less. The mortgage club get the £60 in your example. The network would take around 15% of the £740 (£110), so of the £800, the broker would get around £630. Assuming self employed running their own business. If not then the principle will also take a cut.

Ah yes, this makes more sense - thank you.

I suppose what I'm really trying to find the answer to here is... is it worth me studying CeMap and becoming a mortgage advisor?

I am an accountant in a firm with around 250+ clients.  There have been at around 15 in the last 2 years who have mentioned that they need a mortgage or need to re-mortgage.  Because of this and wondering how many others who have not mentioned it to us, I have wondered if I could build a client base for Mortgages from these existing clients.  This would be an extra income stream and possibly a way of diverging into mortgages full time in the future.

If I did this and joined someone like Primis, can you see this working as far as the commission I would receive?

Thanks.

Why would you want to go from being an accountant to a mortgage broker? 
Dont get me wrong, I absolutely love my job. But I think if I was smart enough to be an accountant, I would rather be an accountant. You go from dealing with HMRC and customers to dealing with customers, lenders, estate agents, solicitors... That sounds like a lot more places to potentially get grief from. 

Why not bring in a mortgage broker? 

It's a family firm and I'm not that keen on bringing anyone in from the outside.  I was just wondering if it was do-able to fit it in to my working day.

The volume at our office is fairly heavy and maybe my idea is non-sensical but eventually I may look to transition away from the accountant side of things and go full-on as a mortgage advisor if it took off.  There is a surprising amount of stress and grief from the accountancy work - I was hopeful the mortgage side of things may be "simpler" (forgive me for sounding like I'm looking down my nose at mortgage brokers - I'm really not).  What I mean is, as an accountant we are fighting on all fronts, Tax, PAYE, Corporation Tax, Inheritance Tax, Capital Gains, phone calls from clients about all-sorts (the old agony uncle routine- some people seem to need life guidance about things you don't deal with -we practice in a rural area and clients are more like friends than just clients) and to top it off, up to 40 minute wait times when ringing HMRC! The joy!

I was hoping that concentrating on ONE thing such as Mortgage advice would give a clearer focus instead of this jumping around from one subject to the next.  Although I have no doubt it is very demanding, I have no doubt.

Maybe I am after a career change and as I like property I may be getting carried away.

Maybe we should just hire more staff for the accountancy side to ease the burden and raise prices drastically.  Clients would love that right. LOL

Only 40 minutes? :P
Try an hour plus to lenders. Imagine needing to get hold of 2 or 3 of them a day. 

I think it is potentially a different kind of stress. I dont mean this to sound corny, but you sort of have peoples lives on your shoulders. First time buyer wanting to get a home, the weight of that can be huge. Imagine there is a problem or something goes wrong, it is quite hard to switch that off at 5pm - thankfully it does not happen often but it does happen. Usually it can be placed with another lender but at times it cant. 

I dont think it is a job you can do around another job in the main, but I suppose being self employed in the office it might be possible. 

Yes I'm sure there is a lot of stress with it.  Maybe I'm just feeling burned out with the accountancy and fancy a change sometime in the future so thinking of Mortgage Advisor role as a possible way to slide to something else.

At the start like this though I would definitely not be doing a great deal of volume of mortgages.  If I had one this week and another one in 3 or 4 weeks I would be happy with that volume initially.  Building it up slowly focusing on my current clients before attempting to advertise further.  Initially if I received 10 to 14 a year I would be content while I build up some experience. Pathetic numbers compared to you guys I'm sure lol.