Help in becoming a mortgage advisor

dunstonh

The FSA is set to announce that from 2009 that tied agents (and multi-tied) will not be able to give advice any more and will not be able to present what they are selling as advice or use the advice title. It will have to be made clear that they are salesmen who are selling not advising. IFAs will be the only class of financial adviser from that point but they will also be required to sit higher qualifications that current. The diploma (advanced FPC) looks like the level being set. So, from a financial adviser point of view you will have two choice. Insurance agent or Financial adviser. Insurance agent requires 5 exams on top of the 3 mortgage exams. IFA will require the 5 exams and 3 mortgage exams (assuming you want to do mortgages) and a further 4 exams.

It is not yet know if the FSA will create the same advice/sales split with mortgage advisers. However, it is known they are not happy with the current mortgage regulation. It would not be a surprise for them to follow the split there later as well. Maybe cemap for the salesmen and the higher mortgage exams for the advisers?

Whatever happens there are a few key things you need to know about financial services.
1 - IFAs earn more than mortgage advisers. Don't be fooled by companies showing you big potential earnings but using IFA figures and not mortgage advisers.
2 - If you go self employed in the early years you will be lucky to earn £15k in the first year assuming no client bank. You may also have to go for up to 6 months with no income as you wait for the business to go through pipeline.
3 - Going with a bank in the early years is the best way to succeed in the long run. You get a salary whilst you are being trained, you get to make mistakes on bank customers with very little come back on yourself whilst you learn (no financial comeback and no future complaints to pay out on) and you can build up a client bank and really see if the job is right for you. It wont be easy and working in a bank is hell but it will be worth it in the long run.

There will be exceptions to the above but its a good generalisation.

Usual stats rolled out now..... over 50% of new advisers leave the industry within 2 years. Most in debt or worse financial position than when they started. Most common reason is due to lack of clients and therefore lack of income. The other stat is that 20% of the advisers generate 80% of the business. If you are in that 20% then you will earn very nicely out of it. If you are in the 80% you can still get a reasonable income but a good number will be earning a pittance.

UK007BullDog

Ahhhh Dunstonh you always say it so eloquently....... :beer:

minimike2

I think some of the above first year figures are low....Personally my first year s/e figure will be more than £30k once its all totted up.

Ian_Griffiths_Halifax

minimike2 wrote: »

I think some of the above first year figures are low....Personally my first year s/e figure will be more than £30k once its all totted up.

But is that before paying all your fees, insurances, office costs etc or is that your Net Profit?

minimike2

Net Profit

Ian_Griffiths_Halifax

Well done then. That's good for your first year.

dunstonh

30k mortgage only in first year is good. However, that would place you as an exception rather than than the norm.

minimike2

To be fair I do work my butt off..

Ive been up till 3am the last two nights getting paperwork done!

Roll on next year is what I say.

dunstonh

minimike2 wrote: »

To be fair I do work my butt off..

Ive been up till 3am the last two nights getting paperwork done!

Roll on next year is what I say.

Wait until you are earning that £30k every 6 weeks and see what hours you do then!

minimike2

Hahahaha!

Im just starting my Adv CeMAP too as im looking to go into lifetime mortgages as well....and a baby on the way....think I will be working 8am - 6am with two hours sleep every night!