Guide to Becoming a Mortgage Intermediary
If you're interested in a career as a mortgage broker in the UK, there are several key steps you need to follow to become certified. Here's a breakdown of the requirements and processes involved.
First and foremost, you'll need to obtain the necessary qualifications. The industry standard qualification is the Certificate in Mortgage Advice and Practice (CeMAP), which is offered by the London Institute of Banking & Finance. CeMAP covers essential topics such as mortgage law, products, and advising clients, and is a minimum requirement to become a mortgage advisor or broker.
Once you've completed your qualifications, the next step is to gain regulatory authorization from the Financial Conduct Authority (FCA). You can achieve this either by applying for direct FCA authorization as an individual or by operating via an FCA-regulated firm or network.
As part of becoming an authorized mortgage adviser or broker, you'll also need to apply to the FCA for permission to carry out regulated mortgage advice. The FCA will assess your qualifications, experience, and business plans before granting authorization.
Another important requirement is professional indemnity insurance, which is mandatory for brokers to protect against claims of professional negligence.
Mortgage brokers must also comply with FCA regulations, including treating customers fairly, performing suitability assessments, and maintaining professional standards through continuing professional development (CPD).
While membership in professional organizations such as the Chartered Institute for Securities & Investment (CISI) is not mandatory, it can enhance your credibility in the industry.
Practical experience is also recommended, and brokers often start by working for mortgage broker firms or networks to gain experience and leads before possibly going self-employed.
It's worth noting that buy-to-let mortgage broking has some specific regulatory nuances, with some buy-to-let broking being unregulated or outside consumer credit regulation except for certain circumstances.
As a mortgage broker, you'll help people find suitable mortgage deals based on their financial circumstances. Specialisms and lending solutions in mortgage brokering can offer huge earning potential, with top brokers working independently or on commission earning over £70,000 annually. At entry level, mortgage brokers can expect to earn between £22,000 and £30,000 annually.
Good communication and organization skills are necessary, as you'll work closely with clients, lenders, and solicitors. Becoming knowledgeable in cross-selling products such as life insurance, health cover, and critical illness cover is also important for mortgage brokers.
Working in the commercial sector, offering commercial mortgages, is an option for mortgage brokers, and the possibility of working in the mortgage brokering industry overseas also exists.
In summary, becoming a certified mortgage broker in the UK requires passing the CeMAP qualification, securing FCA authorization (either direct or via a network), and maintaining compliance with ongoing regulatory requirements. A degree is not essential, but a background in finance, banking, or sales can be helpful. As of 2023, over 400,000 residential property transactions in the UK involved a broker, showing the central role they play in the housing process.
The process of becoming a mortgage broker in the UK involves completing the Certificate in Mortgage Advice and Practice (CeMAP) for essential education-and-self-development, followed by gaining regulatory authorization from the Financial Conduct Authority (FCA) as part of career-development. To maintain professional standards, mortgage brokers must also comply with ongoing continuing professional development (CPD) requirements. In the industry, a degree is not essential, but a background in finance, business, or sales can be helpful.
