Is there a difference between whole market and tied mortgage advisors?

If you’ve drawn up a plan to become a professional mortgage broker, there’s a good chance your learning journey has already begun.

Reading around your newly chosen subject, you’ll have noticed there are an extensive range of different mortgages available that you’ll be able to offer to clients while providing expert advice after you’re qualified. You’ll also understand that in order to legally practice as a professional mortgage broker, you won’t require a formal degree, but appropriate certification is mandatory.

A Certificate in Mortgage and Practice, also known as CeMAP, was designed to provide such a qualification. Following your CeMAP training and after passing your exams successfully, you can add the letters “CeMAP” to your title, informing clients and future employers of your new skills. CeMAP mortgage advisor qualifications are also recognised by the UK’s Financial Conduct Authority (FCA), giving you the legal right to practice offering advice to potential homebuyers.

At this point, you’ll have to decide what type of broker you’ll become, and it will be important to understand that there is a difference between whole market and tied mortgage advisors.

What is a “whole of market” mortgage advisor?

As suggested by their title, whole of market mortgage advisors have the capacity to cover a broader section of the current market for the clients that they serve. The reason for this is because they do not have to solely use products supplied by a specific mortgage lender.

The key advantage that this brings for your clients is that they won’t be limited to a smaller group of dedicated mortgage lenders. Operating professionally as a whole of market advisor, you will be able to track down all of the most suitable deals available for buyers on the current market. This enables you to present your clients with a wider section of deals compared to how many a tied mortgage broker might be able to offer.

It is worth noting that you won’t cover every single mortgage option that is available, you will instead offer a suitable variety representing the mortgages available as a whole.

What is a “tied” mortgage advisor?

Working as a tied or even multi-tied advisor, you’ll operate quite differently. Tied mortgage advisors are connected directly either to one nominate lender or sometimes a group. In such an arrangement, as a tied broker you’ll have a limit on the mortgage products you can provide – and must only present those offered by the lender(s) – to your clients.

While this may seem less attractive, there are multiple benefits for the clients you are advising. Your close working relationship with the lender can often allow you to pass on access to exclusive deals and specially developed incentives.

Professional mortgage advisor training at your fingertips

At Beacon Financial Training, we provide comprehensive CeMAP training courses for people seeking to practice mortgages advice as a career. Get in touch with our dedicated team today to explore your options and book a course.


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