Becoming A Mortgage Broker

When considering pursuing a career as a mortgage broker you should consider all aspects of what this career choice involves. A mortgage broker assists their clients in choosing the most suitable mortgage available to them, taking into account their specific financial circumstances. Obviously this role is a vital one and requires that you keep the interests of your clients foremost at all times. This may seem like a hefty responsibility but as long as the regulation guidelines set by the FSA are followed the process is relatively straight forward.

As a mortgage broker you would assist your clients by explaining the different types of mortgages and explaining the house buying process. You will be expected to offer your clients several different mortgages to choose from and help them to complete the application form for their chosen mortgage. You have a responsibility of ensuring that the client is aware of the repayments involved and the risks should they not be met. Part of the mortgage brokers’ role is to talk the client through the varieties of mortgage protection and sell related financial products, such as buildings and contents insurance.

Most mortgage brokers begin their career working for a firm as they have limited experience, no client base and often need some guaranteed basic salary to support their own family. When employed by a company a mortgage broker will often find that they are required to meet targets which can create pressure. This factor is common with any sales and commission based roles and you should carefully consider whether you are happy to work in a charged environment. Many brokers find they enjoy the buzz of the role and that they perform better under pressure. It is simply a factor you should be aware of and consider realistically how you would react.

You will liaise with mortgage lenders, estate agents and valuers on your clients’ behalf and will be required to keep yourself up to speed on any alterations in the law and new products on the market. In the field this is referred to as continuing professional development (CPD) and all employers will expect you to provide evidence that you are keeping yourself informed of new developments in the market. Should you become a mortgage broker for a bank or building society you will be advising clients on the products they offer.

If you follow the path to work for an estate agents or mortgage broker you will have a wider range of mortgage lenders available to you. You may have a limited range of lenders called a panel or a wide range of lenders known as across the market. It is important that clients are informed of what service they are receiving from their broker as well as which resources the broker will be using. Your role may expect you to advice on a variety of financial products including mortgages; this role is known as an Independent Financial Advisor.

That is a rough guideline of what the mortgage broker role entails, now we will consider the paths available to get there. Depending on what resources are available in your area, you may be able to get an apprenticeship that will allow you to train on the job, although you will not be allowed to work independently until qualified.

Many mortgage brokers begin their career in administration roles and work up to mortgage brokers. It is required by law that a person working in this role should be qualified to give advice on financial products. The recognized qualification within the finance industry is Cemap, this stands for Certificate of mortgage advice and practise and is governed by the ifs (school of finance). This qualification is broken down into levels and can be studied in a tutor lead course form or independently with home based resources’.

A mortgage broker working in a full time position will normally work a 9am till 5pm role although some companies do require brokers to work in shift patterns. Many are based in offices but increasing amounts are working independently from home. Clients often require appointments at weekends and evenings to fit in with their work obligations. This can result in the mortgage broker working out of office hours but this extra effort often pays dividends as the clients often use the same broker should they require more financial assistance in the future.

Jenny Austin is an expert in Cemap training.