If you’re planning on taking a CeMAP training course to become a qualified advisor, you might be curious how much someone in your new profession may earn.
There are many factors that will affect your annual income offering guidance to those in the market for a mortgage. From how qualified you are, to how many years you’ve been practising your certification, various factors can have a major impact on where you stand on the pay scale.
Once you’ve acquired your CeMAP mortgage advisor qualification and started working, how you’re employed will also influence what you earn annually. You might be going it alone as an independent advisor or working as a tied broker only employed by one firm. The way you get paid can also affect how much you might make. Your annual earning might comprise an annual salary and a commission, and these figures will vary depending on the different rates offered by your employer.
If you’re considering CeMAP classes or have completed your CeMAP mortgage advisor training and ready to work, read on for everything you need to know about how much you’ll earn as a qualified mortgage broker.
How do mortgage brokers get paid?
Most mortgage brokers here in the UK are paid via a commission basis. This means that for each successful mortgage completed for their clients, a broker is paid an amount in commission from the mortgage lender.
Depending on how complicated the process is, the mortgage broker may charge an additional fee payable for the services of arranging the mortgage and advising the client. This may be a percentage of the full loan amount or simply a fixed fee.
Many mortgage advisors are employed under the agreement that they will only receive payment if a mortgage application is successful. If the mortgage application is rejected, the broker will not be paid.
How much can a mortgage broker get paid?
Different brokers work to different models of pay. While some are employed directly by a firm and receive an annual income plus commission many others are entirely self-employed, relying solely on their commission.
Multiple factors will affect how much a mortgage advisor will be paid on top of whether they are independent or tied to a company. These can include the size of the loan and any additional products taken on by clients to support their mortgage, for example, a life insurance policy.
How much an advisor will be paid will vary depending on their own rates as an independent worker, or how much their firm dictates their commission is. If you’ve successfully obtained your CeMAP qualification, you’ll have the option to work for yourself or for a firm, and it’s even possible to work self-employed but be hired by a mortgage broker.
The more qualified you are and the more skills and experience you possess, the higher upfront fees you can charge. For complicate cases where clients require special assistance to gain a mortgage, a higher upfront fee can also be charged. It’s also possible for mortgage brokers to charge a success fee, payable when the mortgage is granted. This may be either a fixed amount, or a percentage of the total sum of the loan.
How mortgage advisors earn their money
After CeMAP training, you can offer expert advice to those seeking a mortgage by offering an invaluable service, backed up by industry expertise.
It will be your duty to discover the best possible deals for your clients based on their specific personal and financial circumstances. You must always make sure the mortgages you suggest are affordable so your recommendations are justifiable and ethically sound.
You’ll help your clients calculate affordability and discover a mortgage that suits their individual budget. To find the very best deal for them, you must compare the entire market looking at all products suitable for their situation. When it comes to the paperwork, you’ll fill out and oversee applications for customers on their behalf, for a smoother and more straightforward process.
You should always read the terms and conditions of any proposed mortgage agreement and highlight any parts to your client that may prove unfavourable in the future. You may need to liaise with solicitors in order to complete complex cases as you progress the mortgage on behalf of your client from start to finish. With your expert guidance gained from CeMAP, you’ll be able to assist your client in successfully acquiring their ideal mortgage.
What are the different kinds of mortgage brokers?
The type of mortgage advisor you choose to practice as can have an impact on the way you earn money in your new profession.
Some mortgage brokers work with one lender, offering its products to clients. Sometime referred to as a “tied-broker,” working as this kind of advisor you will only be advising clients on the lender’s products. You will typically receive an annual salary and an agreed commission. Over time, as you gain experience and skill, these sums will rise.
Alternatively, you may work as a whole-of-market broker. While maintaining good relations with many lenders, you’ll remain independent and search products available from numerous sources to track down the best deal for your client. As an independent mortgage broker, you’ll get paid on commission for each successful result from the lender.
Additionally, you may be able to request extra fees depending on your level of expertise and the complexity of the case you’ve been required to advise on. As you grow in experience, with more satisfied customers to your credit, you’ll be able to charge for your services at a higher rate.
Payment process for mortgage brokers
As a mortgage broker, you’ll typically be paid by the lender that employs you. The client will pay your fees to the lender and they will then pay you any sum owed including commission. Success and upfront fees are usually transferred to the company you work for, or to your own company directly if you’re self-employed. Always be clear with your clients, giving them a comprehensive breakdown when it comes to costs to ensure you’re fully compliant with the UK legislation covered in your CeMAP mortgage advisor course.