How much can self-employed mortgage advisors earn?

September 4, 2020 by Brendan O'Neill

Mortgage Advisors

The reason people pay for a course provided by a CeMAP training company is so that they can become a mortgage advisor, but what sort of money can they expect to make if they complete the course? The answer depends on how well they perform their job and whether they choose to work for a particular lender or go it alone as a freelancer.

The difference between being self-employed and being hired by a mortgage firm is that the latter will usually receive a salary with the potential to earn extra in commissions, while the former depend more on commissions. A commission is a payment that the lender makes when a loan is completed. As commissions are only paid at that point, being self-employed may sound risky – and indeed, self-employment always carries some financial risks compared with salaried employment – but the commission money can be high.

A self-employed advisor can earn in the region of £1,000 per mortgage, via commissions and broker fees, with the exact amount depending on the loan size and whether other products, like insurance policies, are included. To put this into perspective, doing a CeMAP course online will cost roughly that amount, including the final examinations. Therefore, a freelance mortgage advisor can earn back their training costs with a single mortgage deal.

Furthermore, the amount an advisor can charge in fees will rise based on their qualifications and experience level, so a self-employed advisor will see earnings rise as they progress in the job, especially if they pursue continuous professional development.