Guide to Becoming a Mortgage Intermediary
A career as a mortgage broker can be an exciting and rewarding choice, offering good earning potential and the opportunity to help people find the right mortgage deal based on their financial circumstances. Here's what you need to know to get started.
Qualifications and Regulation
To become a mortgage broker in the UK, the primary required qualification is the CeMAP (Certificate in Mortgage Advice and Practice) or an equivalent qualification demonstrating competence in mortgage advice. Most brokers also need to be authorized and regulated by the Financial Conduct Authority (FCA), either via a network or directly, to legally give mortgage advice.
Day-to-Day Responsibilities
A typical day-to-day involves advising clients on suitable mortgage products based on their financial situation and goals, processing mortgage applications, liaising with lenders and solicitors, and keeping up-to-date with mortgage market trends. Mortgage brokers build and maintain client relationships, guide clients through mortgage approval processes, and often generate leads to grow their business.
Salary and Earnings
Salary ranges vary by experience and location. Entry-level mortgage advisors might earn around £26,000 to £35,000 basic salary, with opportunities to earn uncapped commission pushing total earnings (OTE) to £45,000–£100,000 or more annually if targets are met. Experienced brokers with strong business development skills can earn upwards of £100,000 OTE, often working remotely or in hybrid setups.
Additional Skills and Specializations
In addition to the necessary qualifications, good communication, technology proficiency, and experience in specialist lending if applicable are beneficial skills. Mortgage brokers can specialize in various lending solutions, such as commercial mortgages, bridging lending, development finance, and refurbishment finance.
The Role of a Mortgage Broker
Mortgage brokers offer lifelong products knowledge, comparing products from various lenders, explaining terms and repayment options, and managing the application process. They can work in the commercial sector, offering commercial mortgages, in addition to residential mortgages. Cross-selling other lifelong products like life insurance, health cover, and critical illness cover can be a part of a mortgage broker's role.
The Importance of Staying Informed
As a mortgage broker, you'll need to keep up to date with mortgage rates, changing regulations, and the property market in general. This includes understanding the current state of the housing market, economic trends, and any changes in legislation that may affect mortgage advice and the application process.
The Impact of a Mortgage Broker
As of 2023, over 400,000 residential property transactions in the UK involved a broker, showing the central role in the housing process. With the right skills, qualifications, and dedication, a career as a mortgage broker can provide a rewarding and financially lucrative path.
While a degree isn't essential, a background in finance, banking, or sales can be helpful. Self-employed mortgage brokers can earn commission-based income, in addition to a base salary, providing flexibility and the potential for high earnings. With the right approach, becoming a mortgage broker can offer a fulfilling career helping people navigate one of life's most significant financial decisions.
In the context of a career as a mortgage broker, a background in finance, banking, or sales might be beneficial due to their relevance to the business. To have greater opportunities to specialize and generate high earnings, mortgage brokers can pursue self-development and education-and-self-development to improve their skills, technological proficiency, and adapt to changes in the mortgage-lending industry.
