Career Paths & Options
Becoming a Mortgage Adviser
With an ever-changing economy, mortgage advisers are still always in demand whether it’s a new mortgage, re-mortgaging or releasing equity in a property; the advice given to a client is extremely important as they could be making the biggest investment of their life, and as such they want to be sure they choose the best mortgage to suit their individual needs.
How to get started
To become a Mortgage Adviser, you must first complete the LIBF CeMAP Qualification or equivalent.
The CeMAP qualification is split into 3 Modules. CeMAP 1: UK Financial Regulations, CeMAP 2: Mortgages and CeMAP 3: Assessment of Knowledge. All these exams are multiple choice and combined, they will result in your certification.
We offer a number of LIBF Accredited training options for CeMAP for those looking for full tutor led courses to self-study with fantastic pass rates. More information can be found on our course page.
Skill set for a Mortgage Advisor
As well as having the CeMAP qualification and legally being allowed to offer advice to clients, it is also important to have the following skill sets to help you have a fruitful career.
Passion
Clients coming to you for advice will look to rely on you for your professional opinion.
For many first-time buyers obtaining a mortgage can be very confusing. Your approach, good customer service and passion towards the advice you are offering is important to put them at ease and promote confidence in what you are telling them.
People Skills
The ability to listen, to communicate clearly and to build a rapport with a client are the most important attributes that anyone can bring to the role of a mortgage adviser.
Without these skills an adviser will struggle to gain their client’s trust and this will severely limit the information that the adviser will receive. The adviser is talking to the client about personal information, including future plans that may project forward for many years. The client will not only be discussing financial issues but they may also need to discuss, for example, whether there are any plans to start a family in the foreseeable future. You will also need to be able show them exactly why the product(s) that you are recommending meets their needs although this may not initially be obvious to them; so establishing a good rapport is a must.
Adaptability
In this industry, one client is not like the next so the information and products will change with each application. This means you will need to adapt, listen to understand each client’s individual requirements to be able to offer tailored advice relevant to them. For example, does the client have life insurance, and is it sufficient taking into account all of their financial circumstances? If you have just arranged a mortgage for the client, then is their life insurance adequate given the size of the mortgage?
Flexibility
Dealing with clients is not a 9-5 job. With most home buyers working full time, to put yourself in a position to best support you client you need to be flexible in your working hours with the possibility of evenings and weekends to match your clients availability; especially for the initial meetings.
This will help to open up your client base and show your potential clients you willing to work around them, resulting in happy clients.
Accuracy
Its is important that you are accurate in your findings. This includes making sure all records you have collected are correct, calculations are accurate and numbers entered correctly and all documents are carefully checked. Errors in paperwork can mean wrong information and mortgage products being offered and mortgage applications being rejected.
10 reasons why you should consider a career as a Mortgage Advisor or Financial Advisor
A role in this industry can be very rewarding. Here are a number of reasons why you should consider a career as a Mortgage advisor.
1. Employed or Self-Employed
Choosing a role in the financial sector provides you with an opportunity to work for yourself or as an employee in an organisation, both of which have benefits. Becoming self-employed allows you to set your own working hours and business objectives. However, the start-up phase can be challenging while you establish a customer base. Working for an employer offers greater job security and the knowledge that you will receive a wage at the end of month.
2. Career Progression
Career progression can be very quick and rewarding in financial services for highly trained individuals. Employers seek determined, motivated and skilled staff to hold senior positions within organisations.
3. Further Education
Becoming a Mortgage advisor or financial advisor requires training and a certain level of qualification to achieve professional credibility. At this point in time you will need to hold certificate in mortgage advice and practice (CEMAP) to become a mortgage advisor and Diploma in Financial Advice (which is a level 4 qualification) to become a financial advisor. The opportunity to partake in further education has several advantages, such as increased opportunities in the jobs market, promotions within a company and satisfaction as a result of personal achievement.
4. Job Satisfaction
Job satisfaction is very important in any form of employment. Becoming a mortgage advisor or financial advisor can provide this because of the nature of the role. Offering an advisory service is about helping people and having the ability to make a difference to someone’s life can be very rewarding.
5. Working with People
The basic role of a mortgage/financial advisor is to provide a service to people that do not have the knowledge or resources to complete the task themselves. Providing advice on financial matters is a professional service that requires training and qualifications. People recognise this and therefore have a great deal of respect for mortgage advisors and financial advisors. Knowing that you are needed, valued and respected can have a huge impact on your motivation.
6. Income Potential
More qualifications or greater experience allow you to command a higher salary. Many mortgage advisors and financial advisors work for large companies that require a range of financial planning and auditing services. This can provide a very lucrative income. However, how much you ultimately make may depend on whether you are self-employed or an employee.
7. Career Longevity
Financial services will always be in high demand. Property acquisition either for residential or investment purposes will always be desirable. Businesses across every industry have a requirement for financial planning, account management and financial record keeping. As a result, the need for mortgage advisors and financial advisors will always exist. Some companies will employ financial experts directly, while others will use consultancy services on an ad-hoc contractor basis.
8. Ageing UK population
The Ageing UK population creates more demand for financial advice. Especially when people reach retirement age there is often a need for advice about financial investments and planning for the future. In addition to pensions, people want to ensure they have the means to live comfortably but also to be able to provide financial security for their families. Financial advisors can provide the help to do this by using their skills in the commercial world to offer a service on a personal level.
9. Emerging Technologies
Innovations in technology have seen a spectacular rise in internet usage and an increase in online commerce. People can now trade online on the stock market. The use of this type of technology can be better implemented with the support of a financial advisor.
10. Transferrable Skills
The skills required to perform the role of a mortgage advisor or financial advisor are quite varied. They need to be good with numbers, have good organisational skills and be computer literate. These types of skills are required in many professions. Increasing unemployment rates are today a constant feature of reports. People trained in financial services gain skills that can be transferred to other roles, which means that employment opportunities are greatly improved.
Further Steps
Should you wish to continue your Professional Development and expand the services you can offer clients then you can look at adding Equity Release (now being referred to as Later Life Lending) to the services you can offer.
The CeRER qualification lets you advise clients on the growing Equity Release Market allowing clients over the age of 55 to release equity in their property to support them in later life and retirement.
Career Paths and opportunities
The Mortgage industry can offer a variety of different advisor opportunities.
Employed
Banks and Building Society’s employ Advisors to recommend their mortgage products. The company will do the marketing and promotions to bring the clients in, with you setting the appointments and meeting with clients. Alternatively, Estate Agents, 2nd charge lenders or some Independent Mortgage Brokers employ their own advisers.
Self-Employed
You have the option to work independently giving you flexibility to work hours that suit you and your client. Here you have a few options; you can work as Directly Authorised or through a Network
company. As a new adviser the recommended route here to start with, would be with a Network Company. This means you trade under that company name, have access to their computer systems documentation, back office and compliance. All payments and applications go through them. You will then be paid your adviser fee (proc fee)and commission with a percentage taken by the company.
Most independent mortgage advisors receive a commission from the loan provider of 0.3% – 0.4% of the loan amount, but commission may increase depending on the type and complexity of the mortgage, plus, of course, you can charge the client a fee.
Typically, a self-employed adviser should be looking to earn anywhere from £30k to £70k or more per annum. In this case the earnings are purely determined by the adviser’s work rate and ability to help his clients. The more mortgage deals arranged by the adviser, the more money will be earned.