Steps to become a mortgage broker or mortgage advisor

To become a mortgage broker in the UK you will need to get regulatory permission from the FCA.

You will need to get a certificate in mortgage advice and practice(CEMAP) or a suitably accepted certification for you to become a mortgage broker.

To get a CEMAP you will need to study the financial regulation modules, these include;

  • CEMAP 1
  • CEMAP 2
  • CEMAP 3

The CEMAP is a qualification accepted by the FCA as a required certification for mortgage brokers.

You don’t need a degree to become a mortgage broker.

The financial regulation modules to become a mortgage broker:

  • The purpose and structure of the UK financial services industry
  • The Financial Conduct Authority (FCA) main aims, activities and relevant Conduct of Business rules
  • The house-buying process and parties involved
  • The different types of customers and mortgages
  • Assessment of affordability and suitability of different mortgage options and associated products

After the modules, you will have to pass the CEMAP exam to become a mortgage broker.

The role of a mortgage broker:

Once you become a mortgage broker you will be involved in

  • Assessing a clients financial situation and eligibility for a mortgage
  • Recommending a mortgage based on a clients affordability
  • Ensuring a client understands the risk of a mortgage and introducing them to suitable protection products

Once you become a mortgage broker you can go and work for an independent mortgage brokerage or go work within a bank where you will only be advising on the bank’s mortgage products.

Working for a mortgage broker

Once you have become a mortgage advisor you may decide to go work for a mortgage broker. The benefits of working for a mortgage broker includes being able to be self employed, being able to work from home, being able to learn more about the mortgage market due to the different mortgage products you will be exposed to and the compliance training you will undertake.

Initially, once you join a mortgage broker you will be supervised for your first few months before you are left to do business on your own.

As a self-employed mortgage broker you will usually have to generate the income

Working for a bank

Working for your bank is your next option once you have become a mortgage advisor. The good thing about working for a bank(a mortgage lender) is that it will likely be a salaried job and hence you won’t have to generate any mortgage leads yourself but rather service the mortgage leads which the bank generates.

You will also learn a variety of skills but as you are limited to selling the mortgage products of one lender the range of compliance skills and mortgage product knowledge such as mortgage lender eligibility criteria will be much limited.

FAQs on becoming a mortgage advisor or mortgage broker

How much money can you make as a mortgage broker or mortgage advisor?

Once you become a mortgage broker in the UK you could make up to £20k per annum working for a brokerage. You may be able to make more if you work for yourself but you will have to handle your compliance requirements.

How long does it take to become a mortgage broker?

It can take up to 8 weeks to become a mortgage broker based on how long it takes for you to complete your FCA accepted qualification (such as a CEMAP) to become a mortgage broker.

How do I find a good mortgage broker?

You can find good mortgage brokers by reading their Trustpilot, google or feefo reviews.

How do mortgage brokers find lenders?

Mortgage brokers find mortgage lenders through the use of mortgage sourcing software.

John Bate

John has 22 years of experience in financial services. This spans across financial research, financial services (As a qualified mortgage broker and underwriter), financial trading and sales at global investment banks. While working as a publishing research analyst, he covered European bank credit and advised institutional clients on investment strategies at both JP Morgan and Societe Generale. John has passed all three levels of the CFA (Chartered Financial Analyst) programme.