Becoming a Mortgage Broker
To become a mortgage broker, you do not require a degree, but you will need to get a Certificate in Mortgage Advice and Practice (CEMAP) or a suitably accepted certification. The CEMAP qualification is accepted by the Financial Conduct Authority (FCA) and is necessary for anyone wanting to advise clients on mortgages. This blog aims to assist those not currently working as an independent advisor or for those considering the move to become an independent mortgage broker, including advisors currently trading as registered individuals.
Necessary Qualifications and Licensing
Qualifications
- Certificate in Mortgage Advice and Practice (CeMAP)
- No strict requirements for work experience, but a background in finance can be advantageous
Licensing
- Meet strict licencing requirements
- Background and credit check necessary
- Regular continuing education courses to remain updated and maintain the licence
Earnings and Career Potential
Salary Expectations
- Basic salaries typically range from £25,000 to £30,000
- Experienced advisers can earn between £45,000 to £70,000
- Highly experienced brokers can earn over £100,000 annually
- Average salary: £43,447 per year or £22.28 per hour
Commissions
- Earned on every successful loan application and approval
- Procuration fee about 0.35 per cent of the loan size
- For a £100,000 mortgage, this could mean £350
The Role of a Mortgage Broker
A mortgage broker’s day-to-day duties include advising clients on the home buying process, understanding clients’ finances, and offering a variety of mortgage options. They can advise on the entire market, which allows them to find the best deals for their customers. The career is rewarding as brokers help clients buy homes and navigate complex financial options to make informed decisions.