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If you think you can help people secure the house of their dreams or advise the property owners about the perfect remortgage deals, being a mortgage broker is a great career option you can pursue.
The mortgage broker has a diversified role in the market like these days; brokers are a requirement for both the buyers and sellers. This includes guiding the public to have a high housing ladder and advising the elderly about how they can make money after getting retired.
There is no difference between mortgage advisors and mortgage brokers. They both provide the same services and work in almost the same manner. The only differences lie between the tied/collaborated and independent mortgage brokers.
Being a collaborated mortgage broker, you’ll have limitations on advising about specific products. These products would belong to the companies with whom you would have been tied up. In other words, the advice you’ll be giving can never have an unbiased nature.
Unlike tied mortgage brokers, the independent ones are free to provide wide market knowledge to their customers, stating the best deals following the budget. Moreover, they’ll be giving honest advice regarding any mortgage. Hence, the suggestions they’ll be providing would be free from any biased point of view.
How to Become a Mortgage Broker?
Skills necessary to be a mortgage broker
- Being open: Many sensitive information would be provided to you by your customers; therefore, you have to gain their trust as soon as possible.
- Effective communication: As a broker, you’ll be expected to narrate the technical information in a much simpler way so that the general public can understand it.
- Great mathematical skills: You are supposed to be quick while calculating the estimates of money and quite simple while explaining the financial facts and figures.
- Effective listening: You’ll have the chance to prove yourself different from your competitors if you pay attention to every single detail the client of yours would be sharing with you.
- Managing your time: Time management is an important factor here as you’ll be handling multiple customers at a given period of time. Also, you have to grab the mortgage offers to be processed legally in a stipulated time.
- Flexible nature: One of the most significant qualities needed to be a mortgage broker is nature. The clients may need to be attended to outside the office hours, especially when specific deadlines are near. So, you’ll be expected to be available to them.
Qualification required to become a mortgage broker
A level 3 certificate course known as Certificate in Mortgage Advice and Practice (CeMAP) must be completed. The course has the approval of FCA, and it is viewed as an industry standard by the majority of employers.
A number of the institutions providing this course have flexible learning options for the students, including distance learning. The course comprises various modules as well as assessments and could be completed within a time period ranging between 6 months to 2 years.
Cost of the study
Approximately within £500, the whole course is completed. You may have to pay additional charges to get revision sessions and reappear in examinations. If you are pursuing the course through your employer’s recommendation, the tuition fee may be paid by him or her.
Entry routes to make a career in the mortgage market
You may take admission in some related courses such as accountancy, banking, finance, or real estate and then opt for pursuing the certificate. For example, though a degree is not mandatory for becoming a mortgage advisor, most people choose to go with this option.
Another way you could get qualified by enrolling in the mentioned certificate program is going for a training scheme in some bank or building society. There, the particular certificate would become a part of the training session.
A fixed income is usually not guaranteed in this profession. However, on average, freshers can have an approximate income of £20,000-£25,000. It can reach £45,000-£50,000 after gaining a significant amount of experience, and further to £70,000-£80,000 as the experience continues to add up.
Is being self-employed a good option in this profession?
Most people well-qualified for being a mortgage broker choose to be self-employed rather than collaborate with specific firms. It would take you to provide advice on an independent basis, and by this, you could be gaining an abundant experience of dealing with the people outside.
You have to be confident enough as you have to cope with the clients and the business and tasks related to the marketing as well. It may feel a little tedious to do, but it’s smoothly done once understood.
To look for new clients, social media could be a great use. Other than that, a website could be created mentioning all the services you provide. LinkedIn could be an excellent option to connect with people by creating an account and updating it frequently. Many local estate agents also offer a client referral.
Keep in mind to stay regularly updated with the new legal clauses and all the associated laws in case of any emergency or fraud. Professional indemnity insurance is a must if your clients take any legal action.
The mortgage market is not that easy to deal with. People who are dedicated enough and are willing to struggle would survive through the hardships of the initial years. One has to be mentally strong not to be too discouraged in the starting days.
An individual with pleasant communication skills is most likely to succeed while working in the mortgage sector. This is because the way we interact with our customers plays a vital role in providing services. Therefore, one has to work hard so that the business becomes successful enough to gain the trust of the people.
Frequently Asked Questions?
Q.1. How do mortgage brokers get paid?
A.1. Well, the mortgage brokers get paid in commissions. Most independent brokers get paid £500; however, it’s not fixed.
Q.2. What is the role of a mortgage broker?
A.2. A mortgage broker helps in finding the best possible deal.