I want to become a self employed mortgage broker: Advice needed please?

peace800

Hi.

I have passed my Cemap qualification and hopefully will be working in mortgage sales for a major bank soon. I am still at a very early stage. I know that I need experience in the market. I am unable to get any straight mortgage advising roles despite my cemap as most comapny want some sort of mortgage sales experience which is why i am looking to work in none- advised mortgage sales in a contact centre for the bank.

My question is, my objective is to work for myself in a few years but how wouuld I go about becoming a self employed mortgage broker with regards to FSA regualtion? How would I apply to them, is there any pre requisite? Would it be in theory possible to work for my self having spent a few years in the industry and having a good leads already (due to solicitor contacts etc)? or would the FSA refuse me to start on my own without lots of experience?

I know that working for yourself is hard and a lot of effort and sacrifice is needed and I also know that leads are bread and butter but my main concern being how would I go about getting set up and registered? what other registrations will I require?

Many thanks.

dunstonh

wouuld I go about becoming a self employed mortgage broker with regards to FSA regualtion?

Almost certainly you would have to use a network.

How would I apply to them, is there any pre requisite?

Depending on the network. Some take on inexperienced individuals. Others insist on at least one years service after you have had competent adviser status. It depends often on how you are structuring your self employment. If you are attached to an existing firm then experience isnt required. If you want to set up your own firm then it usually is.

Would it be in theory possible to work for my self having spent a few years in the industry and having a good leads already (due to solicitor contacts etc)?

What makes you think that you will have good introducers? Solicitors can only introduce to IFAs. As a bank tied agent and in a contact centre you are unlikely to build any relationships up that can help you obtain business.

All you will get is a list of names you have given advice to. If you contact those people after you leave you will be breaching data protection and mortgage regulation. There may be a bit of a blind eye with regards to contacting but is that the way you want to start?

what other registrations will I require?

If you are looking at your own company then you are looking at solvency requirements, satisfying the FSAs control function requirements, having a compliance officer (which for small firms typically means using a network).

I know that working for yourself is hard and a lot of effort and sacrifice is needed and I also know that leads are bread and butter

Really do not underestimate that. It is the single biggest area of failure and the hardest one to get right if you want to succeed. It doesnt matter how skilled you are, how brilliant you are at service etc. If you dont have the means to see people then you will fail. Its as simple as that.

Getting authorised is easy for mortgages. Surviving is harder

peace800

Thankyou.

Sorry for being naive but what is a network? I assume self employed group of firms?

Will the FSA only grant me registration if I have achieved competent staus having been signed of by a firm or bank?

TEDDYRUKSPIN

Yep and yep.

Suggest you stay away from being self employed at the moment. Market has slowed!

Leon_W

LOL Teddy ! I'm driven to drink !

peace800.

It can be a great job, it really can, but often the younger guys coming in want to do it all within a couple of years. Believe me. It doesn't happen that way and they just get disillusioned and burn out.

Do a few years in an Estate Agents, and I promise you, this will be the best grounding you ever get ! Learn the ropes, make contacts ! (important). ONCE you have a thorough knowledge of most of the lenders, and have the all important confidence, join a network. Don't rush it ! A good broker will have learnt his trade the hard way.

You ask what is a network. Well, a network acts as a support for the broker. Maybe supplying compliance, sourcing, computer sytems etc. For this you will pay a monthly charge. The alternative is being directly regulated by the FSA. This may not be a bad thing but involves more behind the scenes paperwork that belonging to a network avoids.

Personally I chose the network route and find it the best for me.

All the best.

dunstonh

The alternative is being directly regulated by the FSA. This may not be a bad thing but involves more behind the scenes paperwork that belonging to a network avoids.

With the RDR, being directly authorised looks like it will be more trouble than its worth. The FSA has said that there may be a compliance dividend for those using support companies. They have also said that directly authorised firms are likely to have their capital requirements increased and they may not be able to use assets other than cash in the account. That would mean directly authorised firms needing £50k in the bank as a float.

You ask what is a network. Well, a network acts as a support for the broker. Maybe supplying compliance, sourcing, computer sytems etc. For this you will pay a monthly charge.

Explaining a network is a hard one. The term can include firms which are just support services to the adviser. However, some networks go a lot further and are more intrusive and can almost end up running your business and making you effectively a member of a salesforce. Personally, I would hate the latter and luckily (not luckily as a i researched it) my network is not intrusive and they work for me and not the other way round. Getting the right network for your needs is vital as it can be a very expensive business if you need to change networks.

The bank "training" route is ideal for financial advisers but for mortgage only it isnt going to help get your clients that you can earn from later.