How to become a mortgage broker?

0
445
broker

A decided process is required to become a mortgage broker. You need to qualify on several set parameters, and only after that, it is possible to win the tag of a mortgage broker. The blog is a specific mention of the complete process and the related facets that may create questions in your mind.

Pass the exam – The basic qualifying parameter

To become a broker in the UK, you need to qualify for CEMAP that stands for the Certificate in Mortgage Advice and Practice. You need to study different modules decided by the FCA.

The modules of the CEMAP include –

  • The structure of the UK finance industry
  • The aims and duties of the Financial Conduct Authority
  • The process of property buying and the role of different parties
  • Parameters of assessment of income for various mortgage products

After you cover all the above modules, you need to appear in the CEMAP exam and need to pass it to get the tag of a mortgage broker.

How much time does it take to become a mortgage broker?

It usually takes 8 weeks to become a broker, which means in 2 to three months, you can become a mortgage broker. However, it is the minimum time, and those who can clear all the stages without any failure can complete the task in the set time. It is not difficult to win the identity of the mortgage broker.

You should not forget that attaining the certificates of a mortgage broker is a different thing and working as a broker is different. When you sit in the market and interact with the real customers/mortgage seekers, then only you become the broker. If you are asking about the time in that sense, then 3 to 4 months are not a significant duration.

Where can I start to work as a mortgage broker?

Majorly you have three options to start your career as a mortgage broker –

  • Work for a bank as their full time mortgage broker. You will get a decided and monthly salary. In such situations you do need to explain the mortgage products to the customers that visit the bank. To get such a job, keep an eye on the market and mark presence whenever you get to know about any such vacancy.
  • You can work as an independent mortgage broker working for a particular lender or many other mortgage companies. In this role, your hard-work is comparatively more because you need to generate on your own. The lender does not provide the name of the prospective customers. The complete fieldwork and research work is on you only.
  • You can work with a mortgage broker either full time or as an independent broker. Both situations have different conditions. As you already know, for the full-time brokers, the salary is fixed, and the company gives the leads. On the other hand, working as an independent broker means you need to find new customers, and accordingly, you get the payment.

The three options have their pros and cons, which you can perhaps notice while reading about the above. Working as an employee brings financial security through a regular salary or income, but your exposure is to mortgage products can be limited.

If the company deals only in a decided mortgage product, you get familiar with a limited part of the market. On the other hand, an independent broker works with different companies and thus gets to know many new things. You should choose only after considering all the related aspects.

As a newcomer, how to become a good mortgage broker?

SPECIALISATION is the most crucial word if you want to become a good mortgage broker. Yes, initially, it is not wise to run after one mortgage product to get specialisation. Your area should be comprehensive and versatile. But this is how one move towards expertise.

While you work in the industry, attain knowledge of every nook and cranny of every mortgage product. This will help you realise your inclination towards a particular field, and then it becomes easy to decide the area of specialisation.  It can be anything, first-time buyer mortgage, self-employed mortgage, right-to-buy mortgage or anything which you find interesting.

Always choose a field that is in good demand in the market. Having expertise in an area still help attract more clients and also earn more money. Give uncompromised services, and a flood of customers can turn towards you.

How much can a mortgage broker earn?

This question always gets an uncertain answer but to give an average idea. A mortgage broker can earn up to £20,000 in a year. It is not a bad deal, and with time obviously, you can make more money. But one significant constraint for the new and independent brokers is that if the market is down, they will have to struggle a lot. For instance – the current market is down after covid-19 chaos, and the new brokers that are on their own are struggling a lot.

So….

The above points become the vital stations where you need to stop as the mortgage broker. After the gain of several years of experience, you can plan to establish as a broking company. One can see the success coming through the glass of hard-work because invested efforts never act useless.