Help in becoming a mortgage advisor

Mr_Frugal

I have put this in this section as I can see there are quite a few professional mortgage advisors here and I was looking at picking your brains.

I am contemplating becoming a mortgage advisor (currently redundant and looking for a new career path that suits my strengths).

I however know very little about the field (have only just started looking into it really) and would therefore appreciate ANY help and advice.

I have several questions :-

* Is now a good time to be getting in to the industry ?

* What is the best way in, joining a company that offers all the training and qualifications or going away and getting these privately then joining somewhere or setting up privately (although I read that you have to be deemed competant and experienced by the FSA - so is there any way around this) ?

* Do you know anyone that is taking on trainees with no CEMAP qualifications or experience at the moment ?

* Are there companies that I should avoid like the plague ? (please PM me if you don't wish to name them publicly)

* What money can I realistically expect to earn in years 1, 2 & 3 ? (ie I can afford to take the pay drop to £20-£25k if I know that my earnings will increase substantially within the next 2/3 years but is that realistic) ?

* Do companies that take on novices tie you in for years with a clause due to the training given ? If so how long could I expect to be tied in ?


I would also appreciate any other useful info/advice and pointers as to where I could go and further research the subject.



Thanks in anticipation,

Mr_F.

minimike2

The best way in would be to look at getting a job in a bank - on normal sales staff. Learn about the financial services industry. Let them pay for you to take CeMAP, learn your trade with thier help, build up some form of client base, get some experience under your belt, get some cash saved up, then after a few years if you still feel its right for you, take the plunge and look to go into a broker role. You could still do this on an employed basis for a while as a "stepping stone" towards being self employed, which is what most brokers aim for. I say this because being a broker is VERY different to being a tied agent in a bank, yet the banking way in is always a good route IMO, especially as you have no knowledge of the industry at present.

NeilQuinn

1.Not a good time to be starting up, freelance. You'd get nowhere without a client bank.
2. Go with Mike's recommendation, bank or building society to kick off with & at least you'd have a decent salary as a cushion for the hard times. You'd also get training etc.
https://www.reed.co.uk have plenty of Trainee FA jobs advertised. Always worth a look.
3. Avoid anyone that's paying "commission only" in the current climate.

Tiddler_2

I agree that the Bank/Building Society is the way to start off as they'll pay for training, qualifications and you will have colleagues to bounce ideas off.

A couple of points to be aware of -

Remember the roles with banks etc are sales roles, you will have targets (and they may not just in mortgages and associated insurances) In a trainee role, I wouldn't expect to earn anything over £20k as a basic - maybe £3-4k lower!!

If after training you are looking to go to a broker on an employed basis, some expect you to be able to obtain half of your business from your own sources within 6/12 months.

To me being a broker is about having the product knowledge, lender contacts, people skills, but most of all the leads/referrals as with out these all of the others bits are worthless!!

Ian_Griffiths_Halifax

You would be better off starting at a Bank or Building Society but forget building a Client Bank there and then moving as the clients would be the Banks and not yours. If you try to take them with you this would be a breach of the Data Protection Act.

You need to get experience in giving mortgage advice first, then move on to working for a broker to get experience in giving advice on multiple lenders products and then you need to look at starting from fresh on a client bank of your own, once you know what you are doing.

Whichever way you choose, now is NOT the time to start.

minimike2

Ian_Griffiths_Halifax wrote: »

Whichever way you choose, now is NOT the time to start.

I disagree. I think starting in an employed role in a bank now would actually be beneficial rather than a hinderance. Smaller business volume means more time to spend on each case, leaving less margin for error. More time to train, and most importantly experience of a falling market, which will go a long way the next time it happens.

Banks are still actively seeking MAs - I was approached this week by a high street bank offering me a £35k Basic plus benefits to go and work for them..... so they must have plans to keep lending. When its an employed role I dont see why starting now would be such a problem.

UK007BullDog

minimike2 wrote: »

I disagree. I think starting in an employed role in a bank now would actually be beneficial rather than a hinderance. Smaller business volume means more time to spend on each case, leaving less margin for error. More time to train, and most importantly experience of a falling market, which will go a long way the next time it happens.

Banks are still actively seeking MAs - I was approached this week by a high street bank offering me a £35k Basic plus benefits to go and work for them..... so they must have plans to keep lending. When its an employed role I dont see why starting now would be such a problem.

Sorry but disagree somewhat.

As for the £35K that is probably Barclays as I was approached by a recruiter for them as well.

Who is currently hiring: Abbey, Barclays, A&L, HSBC, C&G, NatWest.
With CeMAP1 you are looking at £16k to £18K basic. With full CeMAP and 2 years experience around £25K and more.

Ask yourself why banks are recruiting all the time? Because people come and go. And why go? Because of the targets and all the other things around the job role. You have to have pretty thick skin to last as you will not just feel the pressure from your manager, but from colleagues, other branch staff and the branch managers. If you dont make the sale woe you.

Banks have a very high target. If you are not a sales and people person you will have a very hard time. Also their training leaves things to be desired. Building societies train better. Barclays was also very good.

As a newbie though banks or small estate agents are the way to go. You cannot take the customers with you as clients as you would then be breaching the contract and they can have you over a barrel.

As for the FSA route, you can go self employed right away but you wont last long as you have no experience and knowledge and the first complaint will have you closed down. So you would have to join a network or a broker who will also train you.

There were a couple of companies I would have said to stay away from but they are now closed down. Some tie you in for a very long time and when you leave again "your" clients are really theirs and they will make sure you will not poach them.

Also read other posts/threads in this forum as this has been discussed numerous times. I guess you have a clean credit record and clean police record? If no then no chance with the banks.

Have you worked in sales before?

Mr_Frugal

UK007BullDog wrote: »

I guess you have a clean credit record and clean police record? If no then no chance with the banks.

Have you worked in sales before?

Yeah have both a clean credit record and police record (as has my fiance).

I have NEVER worked in sales before (which would be one of my main worries). My background is as a Senior Manager in Logistics, so I am very used to dealing with people but usually as 'the boss' and have never had to sell.
I would be reliant on the training being comprehensive not only on the product but also on sales skills.

My second worry would be on earnings growth. Whilst I am comfortable at the moment (in terms of savings) I could afford to take a cut in pay (the figures discussed here as a starting salary would be a substantial pay cut). I would be happy to take this cut if I honestly believed that my pay would be over £30k within 2-3 years. Is that realistic or am I looking at years and years till I can reach any half decent salary ?

Someone mentioned earlier that www.reed.co.uk were looking for Trainee FA's. Presumably the same route would apply here (ie stable work for bank/building society to start and then branch out when experienced ?)
I assume that Financial Advisors is similar to MA's only more training and wider range of financial products ?
Would I be more likely to realise my earnings potential as a Trainee FA as opposed to a trainee MA ?

UK007BullDog

Trainee FA get better salaries but very hard to find a position.

Most trainees come from either a paraplanner role or from mortgages.

Also if going FA you will need to do continued studies to stay on top of regulation. So expect to sit exams at least once a year on top of the ones to get to where you are. Networks make you take exams either monthly or quarterly/half yearly.

Why dont you go onto Ebay and buy yourself a training CD for CeMAP for a couple of pounds to get an idea what you are planning to do.

Alternatively if near a Blackwells Bookshop ask to see the CeFA/Financial Adviser/CeMAP books and have a read.

Dont expect to learn any sales from any lender. They will expect you to know this/have the experience already.

Ian_Griffiths_Halifax

A Mortgage Broker/Advisers role when outside of a Bank or Building Society environment, is to help people to buy the right mortgage, not to sell them a mortgage!

Consider this as it is what makes the difference between an Advisor and a Salesman.

You have to be a bit hard on your self in the early years. Working for a lender and KNOWING that there are better products out there but you have to grit your teeth and tell people that yours is great.

UK007BullDog

Mr_Frugal wrote: »

My second worry would be on earnings growth. Whilst I am comfortable at the moment (in terms of savings) I could afford to take a cut in pay (the figures discussed here as a starting salary would be a substantial pay cut). I would be happy to take this cut if I honestly believed that my pay would be over £30k within 2-3 years. Is that realistic or am I looking at years and years till I can reach any half decent salary ?

To reach £30K would take you at least 3 years if not more. Remember you are on a low basic to get you to sell, you need to reach target to get your bonus. And that is why a lot leave the banking industry and move sideways into broking but wont make a decent wage until the 3rd year.

In fact so many people have left mortgage advising that some brokers are beginning to pay a decent basic wage up to £25K but you would need to have a couple of years experience.

As with everything only a few reach the £100K and remember the tax man gets 40%.... :rotfl:

Those that do well get others to join them and they get a cut.

As a Broker you also have lots of costs, you need insurance, ad data proetction registrations and lots of other stuff which will cost you at least £150 per month. Some mortgage networks pay this for you in the first few months to get you up and running. Then they also take a cut from your commissions and fees for their services.

Phone around some brokers in your area and ask if they are hiring and what their wages are for a trainee.