Become A Self Employed Mortgage Adviser

Self employed mortgage adviser
Helpful tips text with a mortgage adviser using laptop at office

So, if you’re reading this blog, then you’re looking to become a self-employed mortgage advisor. That’s great news, as to become self employed was the best decision that I made. During this 3 part blog series, I will cover some of the key points and my pros and cons.

How Should I Prep To Become A Self Employed Mortgage Adviser?

When you decide to become a self employed mortgage adviser, there are a couple of points that you should take into consideration such as clients, money, place of work and your mindset.

As mortgage advisers, we work on commission and fees and with the average application taking between 3-6 months to complete, having the funds to support your income during those crucial months, is very important. You also need to think about where your business will come from. Do you have a client bank or are you starting from ground zero. Where will you generate business and what kind of business. Are you happy to work from home, or, would you prefer an office space. Do you start as a sole trader or limited company. These are all excellent questions, and we’ll be working through these over a the next few blogs. Firstly though, lets look at income.

How Much Should I Have To Support My Income When I Start?

One of the main worries about going self employed is the income. During your first 6 months, your income from commission is likely to be very low. This is because, it can take up to 6 months for any amount of commission to come through. There a couple of ways to help with this though. Firstly are you charging a broker fee? This is the first piece of income your likely to receive, either on application or mortgage offer. How much is your broker fee, £199 or £999 and then how many fees do you need to cover your basic costs. You also have others services such as surveys that pay earlier and potentially insurances and wills.

I was quite lucky as my house a had a good income, so my basic wage was £1500 per month. I then made sure, I had funds to cover me for 6 months and cover leads and marketing. My overall budget when I started was £10,000 where it was make or break.

How Much Do Self Employed Mortgage Advisers Make From Each Case?

This is very important and depends on the firm. Typically, commissions start at 40% and go up to 90%. The former is usually when you approach a firm and they supply the leads, the later is usually reserved for those who wish to become a appointed representative in their own right. You have certain others cost to consider, such as monthly fee’s and marketing. Every company is different, but for us, we pay 55% of the net income received for leads provided and 85% for your own business. This means that if you write an average £10,000 of business every month, then a salary between £50 – £100k is achievable. Bear in mind, your potential sales include broker fees, proc fees, solicitor & valuation referrals, B&C and protection.

Why do I love being self employed?

I love being self employed because it gives me the flexibility to work how and when I choose. Some days I work long hours but, I can offset this by working less hours or, even take a long weekend. I have time off to see my family and take part in my hobbies. For me, being self-employed is about getting the right work/ life balance.

What’s Next?

There are many firms and networks in the UK that will be delighted to discuss your options and so would I at Robin Mortgage Design. But, your first step is to speak with a few people about your options, so you can understand what is most important to you and the support you’ll receive.

If you would like to discuss your options with us, then you contact us on 0333 242 3863 or use the contact form or our careers page.

Written by Mark Travell, Director of Robin Mortgage Design