How to Become a Mortgage Broker

Why might you want to take advice from me?

As one who achieved success both as a financial adviser and as a mortgage adviser, I would be the first to tell the aspiring new mortgage professional that, despite what others will tell you, the path to success is rarely described as easy by those in the business, and that certainly includes me. The tragedy is that, although I would never describe it as an easy journey, it really need not be as difficult as it was for me and as it is for the vast majority of other new starters.

What can you expect to earn?

Don't get carried away with references to six figure earnings; this is not an overnight goal and, in fact, most people choose not to drive themselves to such dizzy heights, settling rather in a comfort zone way below that level. However, I have helped many good listeners to reach that level within their first 5 years in the business.

In any event, whether your goal is to earn £30K, £60K or £90K per annum, to work in a bank or as an independent broker, it all begins with the foundation knowledge. To become a professional in almost any field other than sport, we need to pass some level of academic qualification and the mortgage professional is no different.

The industry-preferred qualification is the Certificate in Mortgage Advice & Practice (CeMAP), and anyone wanting to give mortgage advice in the UK must pass this (or a similar) qualification before doing so.

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CeMAP Training and Rising House Prices

CeMAP students are concerned because, according to the Nationwide Building Society, house prices have risen again in April by 0.9% compared with the March level. CeMAP students are asking if there is likely to be a crash, and how this may affect their career prospects. This two-part question needs greater exploration.

Firstly, it is good to know that CeMAP students are following the housing market closely because this is obviously going to be their future career environment. It is vital that, in addition to studying for the CeMAP exams, the students do spend time looking at the bigger picture so that they can gain a well rounded education in the industry. Incidentally, this is another reason why a CeMAP training Home Study course can provide a more informed mortgage adviser than the so called crash courses - by studying their CeMAP training material over a period of weeks rather than days the student can use the knowledge gained each step of the way to explore the industry in general and apply their new found insight to the real world.

In the bulletin released by the Nationwide, they say that a crash is unlikely so long as the Bank of England does not raise interest rates unnecessarily. Of course, no one outside of the Monetary Policy Committee can influence the decision (as those who are CeMAP trained know from their studies), but the job of this committee is to keep inflation within the target set by the Chancellor so anything is possible. The economic conditions are very different from the time of the previous house price crash in the 1970s and so hopefully, this time, there will be a control of house prices without the sudden deflation that was seen then.

If there is a crash, will the CeMAP trained adviser still be able to find employment? Obviously, this is a difficult question without being able to use a crystal ball. In the real world, even when house prices are unstable, there always seems to be a high demand for advice on mortgage matters and finance in general. Some believe that a fall in house prices may lead to more first time buyers coming back into the market because they can then afford to buy again. Certainly, CeMAP training is a preparation for a career that appears to weather a variety of economic circumstances better than most.

One thing that is certain is that people will always be buying houses, re-mortgaging houses, and selling houses, and while these activities are going on, there will always be a need for CeMAP trained mortgage advisers. And with the best CeMAP training, you will have a well rounded knowledge of the industry, not just a certificate that says that you have passed an exam. This is what most customers want from their advisers, not just the bare minimum of a CeMAP qualification, but someone who has been through a comprehensive CeMAP training course and monitored the industry while studying.

So, in conclusion, it is difficult to say for certain whether or not there will be a house price crash if the Monetary Policy Committee continue to increase interest rates, but it is certain that the MPC do not want to cause a crash. However, whatever the outcome in the housing market, it is safe to assume that CeMAP training will continue to open the door to a professional career that provides many opportunities in the job market. To find out more about CeMAP training click the link.

CeMAP Training Syllabus

The CeMAP syllabus is much more wide ranging than most people expect with the broadest syllabus being in the CeMAP 1 exam. CeMAP 1 actually covers most of the financial services industry in a summary form to give the student a general understanding of the industry. This is obviously useful to the CeMAP student who is totally inexperienced in the financial services industry, but it can come as a surprise to people who think that CeMAP training is all about mortgages and nothing else.

The CeMAP 1 syllabus also covers in some depth, the financial services regulatory environment, and how the legal framework for the financial services industry has been developed over time. This includes the impact of the European Union on the regulation of the industry and continues right through to the role of the Financial Services Authority in regulation.

CeMAP training for the module 1 exam will also cover the wide range of benefits that are available for people including a range from those who are unemployed right through to people who are retired. This information may seem strange in a CeMAP exam, but it does give the student a well rounded understanding of the financial market place.

The syllabus for CeMAP 1 also includes the classification of financial assets so that the student can understand the different types of asset that customers may hold and the impact these can have on their financial circumstances.

In total, CeMAP training for the module 1 exam only contains approximately 10% of information relevant to the mortgage industry directly.

CeMAP 2 is the module that is generally mortgage related, although even this module does contain elements that are only loosely connected to mortgages directly. The CeMAP training syllabus for the module 2 exam is broken into 4 units i.e.

Unit 3 which is Mortgage Law, Policy, Practice and Markets.

Unit 4 which covers the Mortgage Application process.

Unit 5 which describes Mortgage Payment Methods.

And Unit 6 which is Mortgage Arrears and Post Completion Matters.

Some examples of the CeMAP 2 syllabus include all of the different mortgage products for example fixed rate, standard variable rate, or discount rate mortgages. Different repayment methods are also described including the use of Pension Plans, ISA's, and other investment products.

The mortgage application process is covered in great detail in CeMAP training for the Unit 4 exam because this is a major area of activity once the student has qualified. This unit includes such areas as assessing the status of a prospective borrower to ensure that they are eligible to borrow. It also looks at the security for the loan, in this case the property that the mortgage is being considered for. CeMAP training also covers the different types of insurance that the borrower may need, for example life cover, critical illness cover, or even buildings and contents insurance.

CeMAP 3 then takes the CeMAP 2 syllabus and uses case study type questions to explore in more depth the student's knowledge of the subject. By setting up simulations of real life situations, the CeMAP 3 exam gives a very thorough assessment of the student, and this is a very thought provoking exam.

To conclude, as you can see CeMAP training covers a wide range of topics which is why it is vital to ensure that the student is able to study fully and comprehensively. This means that the knowledge will be complete and the student will have the best prospects for passing the three CeMAP exams. To try and rush through the learning experience is likely to result in gaps in knowledge that can only lead to problems in the future. To find out more about CeMAP training from home simply click on the link. Remember that the syllabus is broad reaching and a comprehensive course will provide you with the knowledge you need to pass the exams.

What is CeMAP?

The CeMAP qualification is set by the Financial Services Skills Council (FSSC) and is accredited by the Qualifications & Curriculum Authority (QCA) and administered by the Institute of Financial Services (ifs). Once qualified, you can use the initials CeMAP after your name on your business cards and on any other stationery.

Ok so far? So, the CeMAP qualification is the seed from which a new career as a mortgage adviser is developed. At the time CeMAP was first introduced, back in the late 1990s, I was the Sales Development Director of the large brokerage mentioned earlier. Imagine the task! Over 2,500 independent mortgage brokers to be trained and guided through CeMAP. This was my first introduction to CeMAP Training and such a mammoth task as training 2,500 brokers required a logical, methodical solution. In brief, I developed a CeMAP distance learning solution which, when combined with classroom style training, gave us the desired results with maximum efficiency.

CeMAP training is still a significant part of our overall task in the development cycle of new mortgage brokers and we continue to provide a combination of classroom training and distance learning materials to achieve success in this important early stage. Our distance learning materials employ online video, computer-based revision texts and over 2,500 exam questions built-in to our unique self-developed software package.

What does CeMAP cover?

The CeMAP qualification comprises three separate modules, as follows:

· CeMAP 1 - UK Financial Regulation

· CeMAP 2 - Mortgages

· CeMAP 3 - Assessment of Mortgage Advice Knowledge

We cover these three modules in 2 x 5-day courses, the first of which prepares you fully for CeMAP 1, while the second prepares you for CeMAP 2 and CeMAP 3. In a later article, I will go into more detail about the topics included within each of the three modules.

Summary

If you are considering a career as a mortgage broker, whether employed or self-employed, whether tied or independent, whether part-time or full-time, be sure to take advice from someone who has already made the journey with many others.

When you've done that, we can tell you all about Phase 2, which deals with how to achieve Competent Advisor Status.

By the way, when doing your research, be sure to watch out for the sharks! I'll happily give you some ideas on what to look out for.