Becoming an Independent Mortgage Advisor

[free-rider]

I currently work c. 20-25 hours per week running a small fully remote/WFH accountancy and tax advisory practice with the help of couple employees and several sub-contractors. Happy with income it brings and aiming to delegate more day to day work to employees while I concentrate on technical and advisory side of the business.

I want to expand services we provide to include mortgage advise (likely under the subsidiary Co) - based on the current client base, I reckon I would easily have c. 20-30 leads/applications per year just from the current clients alone. Don`t expect this to become a major money maker, more of a side hustle and also good help to self-employed/Ltd director clients who often struggle to secure mortgage due to some brokers not having a clue how small businesses operate.

I have MA in Finance, CTA qualification and extensive experience in Finance/Banking/Accounting/AML etc. so don`t expect CeMAP exams to be an issue. Did loads of googling and just want to confirm my understanding of what happens after I get CeMAP.

1. Pass CeMAP exams
2. Join a Mortgage Club/Network for access to intermediary software, compliance/admin assistance and supervision (pay their fees and cut from writing)
3. After 6-12 months try to obtain CAS
4. Then decide if fee level is worth going for direct FCA registration (in my case, I already have admin staff in current business who could take care of compliance and other obligations)

Have I missed anything?

 

[free-rider]

Also, looking to book a CeMAP course with the London Institute of Banking & Finance.

Anyone here done it with them? Any other good study providers (online)?

 

[tony84]

I think I seen your post on another forum? I did reply to that.

I think the amount you want to do will make it difficult to get networks onboard, you are probably going to have to increase the numbers, I reckon minimum 30 mortgages a year within around 12-18 months.

It should be doable though, but its not a job you can sort of dabble at. Between lenders different criteria, the FCA, CPD requirements etc it is quite a big job.

 

[free-rider]

I think I seen your post on another forum? I did reply to that.

I think the amount you want to do will make it difficult to get networks onboard, you are probably going to have to increase the numbers, I reckon minimum 30 mortgages a year within around 12-18 months.

It should be doable though, but its not a job you can sort of dabble at. Between lenders different criteria, the FCA, CPD requirements etc it is quite a big job.

Thank you for your reply.

Might have been a similar post on another forum you replied to as I only posted here.

I think at least 30 applications per year should not be an issue just from tapping in to my current accountancy/tax clients list. Any additional recommendations will come on top of that.

I am also looking to hire an additional admin team member for my existing business who will assist with the mortgage brokerage admin side of things (once qualified and joined a network I`m looking to chose an optimal CRM to use internally for all leads/processes and follow ups).

Any comments on the process steps outlined above or recommendations re networks?

 

[tony84]

The CRM is something chosen by the network. Although you can have your own, but you are probably then doubling up on the work.

A lot of people get caught up in the pricing of the network, but for me there are 2 more important issues:
1) The compliance process. They will all tell you they have a great process that protects you. Whilst that may be true on the protecting you front, it might not be when it comes to how much time you spend doing the compliance work. As an example, I spoke to a network once who told me I HAD to quote for life insurance on every case. So if you have a 70 year old with no family, you still have to do a life insurance quote. I appreciate that it is not massively time consuming and it is unlikely to happen often, but you have to wonder who that benefits... It adds about 20-30 minutes to each case.

So I think it is important to understand the process and how much pointless crap you have to do - there will always be some, but how much is going to waste your time to go OTT in protecting yourself or trying to earn everyone more money.

2) What happens when you get a complex case. This is arguably the bigger issue as this will cost you money. As an example, I once had a mortgage enquiry for a nigerian lottery winner. Straight away you think thats dodgy - but it wasnt. The network I was under at the time (they no longer exist), sat down with me and said they wanted a letter from camelot and a bank statement stamped by the bank showing the payment from camelot to the bank account. Some (probably most) networks would say nooo thats too iffy, we are not doing that. What they actually mean is you are not doing it. So you lose maybe a grand because they dont want to do anything extra.

You are probably going to find all networks want around 15-25% of your income. That might be broken down as commission splits, monthly costs or a combination.

Its been a while since I was under a network so its difficult to recommend any im afraid.

Also, have the conversation about when you leave. Ask them what happens, because a lot of networks make it very difficult especially if you write protection and get the commission upfront. If they tell you something that you like, get it in writing.

 

[free-rider]

Thank you tony84

The CRM is something chosen by the network. Although you can have your own, but you are probably then doubling up on the work.

Thank you, all very valuable points.

1. 15-25% network cut is not an issue as mortgage brokerage won`t be my main source of income. Firstly, I want to add it as an additional service provided to the existing client base who often struggle to instruct good advisor for self-employed/Ltd director mortgage cases. I`m confident that even the fees from 30 mortgages a year will cover the costs and leave a bit of a profit.

Have noted your point re compulsory quotes etc. Will definitely check with the networks I have contacted so far.

2. Very important point as the vast majority of my current client base is likely to fall within the less plain vanilla cases, i.e. having various sources of income etc.

I have currently contacted Openwork, New Leaf and PRIMIS and looking to speak to them next week to see what their conditions are.

 

[tony84]

I have heard good things about new leaf, they tend to be expensive though. But I suppose you get what you pay for to an extent. But I have no first hand experience with them.