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Cemap and bad credit

deniro_2
Posts: 1 Newbie
Hello,
I am just woundering if i can become a mortgage advisor with a bad credit rating.
I am studying at the moment for my cemap 1, is it still worth taking the test.
I have an outstanding loan, which the payments are being payed constantly, it just that, i cannot borrow anymore, so i am asumming my credit is not hat good.
Will this go against me if joing a network?
I would be gratefull for any feed back.
cheers
And a merry christmas and happy new year to all.
I am just woundering if i can become a mortgage advisor with a bad credit rating.
I am studying at the moment for my cemap 1, is it still worth taking the test.
I have an outstanding loan, which the payments are being payed constantly, it just that, i cannot borrow anymore, so i am asumming my credit is not hat good.
Will this go against me if joing a network?
I would be gratefull for any feed back.
cheers
And a merry christmas and happy new year to all.
0
Comments
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I am just woundering if i can become a mortgage advisor with a bad credit rating.Will this go against me if joing a network?
Potentially. It depends on the control functions that you were applying for and what network services you were buying.
Having a loan and making repayments within the terms is not bad debt. Assets minus liabilties has to show a surplus of at least 10k. There is talk about increasing this to 50k but that would only likely impact on directly authorised firms and in the case of limited companies that would mean having £50k in the bank account.
A greater concern would be your future income if you were to go down the mortgage adviser route. It isnt exactly a well paid role in the early years and the only ones that seem to make a really decent living out of it are those that have experience, large client banks or footfall and/or run their own company. What business plan do you have in place to make a living out of it?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.0 -
Why do you guys want to get into a contracting industry?
Another firm went pop last week - 'The Mortgage Lender' based down in Hampshire I think. This is happening all over. Every packager I know has laid off staff.
A low credit rating in its self shouldnt be an issue, but bad credit should be. This means late payments, arrears and so on.
My advise is get a proper job in a growth area such as enviromental industry, green energy (selling portable biofuel plants for example), long term storage, overseas property or transaltion services for migrants.0 -
Hi - I used to be a mortgage advisor with the bank I work for. Hated the job personally but someone has to do it. I doubt you'd get a job with a high street bank if you've got a bad credit rating as every member of staff needs to be squeeky clean when they start. Although I did work with a girl who was sacked for committing fraud and went onto work in an estate agent selling mortgages. Guess its where you decide to work which will determine whether you'll get a job or not.There are only two things a child will share willingly - communicable diseases and their mother's real age0
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I agree that it sounds like you have a low credit rating rather and bad credit (unless you do have CCJs, defaults or missed payments in the background).
As dunstonh says, it depends on the firm or network. They are the ones who have to be responsible to the FSA for your actions, so if the firm/network are ok with you then it will not stop you getting work.
I know an adviser who got a job with a CCJ, but he had a very good explanation (long story) and it was paid off in full within a couple of months. Few people will employ you if you have bad debt (CCJs etc) oustanding .
Be honest with whoever you plan to work with/for - it goes a long way. Them finding out without you telling them is the worst thing that can (and does) happen. My network credit checks me at least annually and wants an asset and liability statement for both me and the business at least once a year so the financial side of things is v important and not one to try and hide any less than perfect marks in.
Conrad is correct though (God... I feel dizzy) You need to think very carefully before coming into this industry. It is not easy money (wish it was) and things are going to get a lot tougher in the next 12 -24 months so will be a very hard time to be making a start.
I am interviewing 2 advisers who have made hay for 2 years (working for a sub prime specialist) but have seen the market disappear in the last few months. One is down to about 1 appoinment a week with his current firm and has to travel the country for it. The firm you work for is all important and not all good ones will be recruiting.
Good Luck thoughI am an IFA (and boss o' t'swings idst)You should note that this site doesn't check my status as an IFA, 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.0 -
Why do you guys want to get into a contracting industry?
Another firm went pop last week - 'The Mortgage Lender' based down in Hampshire I think. This is happening all over. Every packager I know has laid off staff.
A low credit rating in its self shouldnt be an issue, but bad credit should be. This means late payments, arrears and so on.
My advise is get a proper job in a growth area such as enviromental industry, green energy (selling portable biofuel plants for example), long term storage, overseas property or transaltion services for migrants.
What an absolutely ridiculous post.
Cricket isn't as popular as football, so maybe Andrew Flintoff should just go and play football instead?
Regarding the original question - bad credit will mean you struggle to get in with banks etc, but a mortgage advisor for a 'regular' firm shouldn't be a problem. Financial advisor and mortgage advisor are different things, having bad financial history should stop you being able to advise people on their finances, but advising people on the best mortgages to take shouldn't take your poor handling of your personal finances in to account.I am a Mortgage AdviserYou 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.0 -
What an absolutely ridiculous post.
actually its not. Ok, its written Conrad style but there is a lot of sense there.
The industry has too many people joining it as new recruits for the level of jobs available. Over half of those fail within 2 years.
Looking forward you have to look at what is happening. If the RDR proposals go though you are likely to see a lot of IFAs give up full authorisation and drop back to mortgage only. So, given a choice is a firm going to take on IFA with a client bank and loads of renewals or a brand new individual with no client bank, no experience and no renewals?
The amount being lent is likely to drop further. So, that means less mortgages. Especially in the more profitable higher risk end of sub prime.
Also, as people find their income stretched they start cancelling insurances. Those that live on indemnity (fools) are looking at clawbacks starting to hit and for many mortgage advisers, they cannot afford to live on non-indemnity as they dont do enough mortgages.bad credit will mean you struggle to get in with banks etc, but a mortgage advisor for a 'regular' firm shouldn't be a problem.
Sorry but many firms and networks do take it into consideration.
The real risk here is that the OP hasnt got what he considers a good credit record and is considering a career change where more than half fail within 2 years and the income stream can take 3-6 months to start kicking in and is entering the industry at a time when mortgage provision is in decline. Plus you have the risks of the RDR on the business model of advisers (not a problem for IFAs but the FSA have suggested it will be rolled out to mortgage advisers as well and that will be a big change).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.0 -
Dunstonh
I have a feeling that a higher proportion of people have been drawn to the role in the last few years, enticed by large commissions, however, few seem to realise that only about 5% of us really make some serious money, the rest either drop out or drift along producing modest figures.
Regulators have long had the view that those who are up against it financially have a higher statistical propensity to discharge thier duties in a non compliant manner. If your spouse and kids are worried about making ends meet you are more likely to cut corners in order to get a deal through. One of the worst examples of this is advisers completing life policy applications after the client signed a blank form!
By the way, to all the happy clappy false people can I remind you I sold my UK B2Ls as I forsaw the current market, did you, or were you too busy reading the Sun telling everyone "properddeee only goes up, innit" ?
Remember also how you laughed when I invested in Morocco? I give it 3 years before some of you will suddenly click with Morocco and consider it in the way you do Dubai now - which of course will be 5 years too late! Again, less Sun reading and listening to capital radio might help you.0 -
Am I the only one who would feel uncomfortable having a financial advisor who couldn't manage their own finances?I'm a Forum Ambassador on the housing, mortgages, student & coronavirus Boards, money saving boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Forum Ambassadors are not moderators and don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com (it's not part of my role to deal with this). Any views are mine and not the official line of MoneySavingExpert.com.0
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Merry X-Mas to everyone!
I remember around 6 months ago have been offered a self employed M.A. position without any credit checks etc. As far as I understood, being directly authorised by the company and having company Reg. number does not necessary mean being authorised by the FSA. So as someone said it is up to the company to make such kind of checks.
In times of today market fall and dramatical decrease of mortgage sales I have noticed there is increased demand for the new M.A. particularly on self employed basis. Of cource it is not fantastic way to start the career but I think it is the decision everyone has to make or not to make.0 -
Am I the only one who would feel uncomfortable having a financial advisor who couldn't manage their own finances?[/quote
Silvercar, I hate to say this as on the whole I think you are ok and right about a lot of stuff, but it is wrong to judge an individual on their credit status.
In this job, you see people get into arrears and struggling for a variety of reasons. death, desertion, illness, unemployment, a sick child.....not everyone who has had or is having credit problems is unable to manage their own finances.
I am a classic example. As a moderately successful mortgage adviser I am not ashamed or embarassed to say that in 2000/2001/2002 I left an abusive relationship and went through a divorce. I was left penniless and homeless and that soon led to unemployed. As a result of that I got 2 ccjs and 3 defaults. I have paid them all off by 2004 but it took me a while to get straight. I was financially qualified back then, working as a paraplanner in a specialist field.
Does that make me an incompetent adviser? or would it have made me incompetent at my job at the time? I think not!
If anything, someone who has suffered bad credit and the restrictions and frustrations would make a better adviser, one who can help and sympathise with their clients even more. Someone who can spot spending patterns and things going pear shaped and warn a client before things get too bad.
In my career I have been directly authorised, with Lime, with Mortgage Times Group, with Pink Homeloans and now I am in the process of authorisation with Sesame.
My credit has never stopped me getting authorised, as a thorough explanation and good references have always got me by.
So in answer to the OP. Dont let your credit rating stop you studying and becoming an adviser, yes there are a lot of us (and don't take lots of job advertisements as a sign of a "need" for more self employed advisers, they are always there in the hundreds!)
As long as your income exceeds your liabilities (which sometimes mine only just does) then you will be ok.
Good luck and all that.
MMI 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.0
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