Brokers of mortgages and the FSA
In the UK, to become a mortgage broker, a person must pass a series of tests given by one of two training organisations. The person who wants to become a broker will also have to get enough training and experience on the job in the financial services industry.
The Financial Services Authority is in charge of overseeing the financial services business in the UK (FSA). The regulator will keep an eye on a mortgage broker who wants to help their clients get mortgages for residential properties. The FSA has decided that mortgage brokers who work in this area of financial services must first get an approved qualification and get training and advice from other qualified advisors before they can be signed off as competent mortgage brokers.
Once a mortgage broker is licenced, they can help their clients with any mortgage-related question. The mortgage broker can then work for a bank or building society, a mortgage brokerage, an estate agency, or they can start their own business and work for themselves.
Going to school to become a mortgage broker
The first step to becoming a mortgage broker is passing one of the FSA-approved qualifications. The Chartered Insurance Institute offers the Certificate in Mortgage Advice (Cert CII (MP)), the Institute of Financial Services offers the Certificate in Mortgage Advice and Practice (CeMAP), and the Chartered Institute of Bankers in Scotland offers the Mortgage Advice and Practice Certificate (MAPC) (Scotland only).
The mortgage broker qualifications can be taken by anyone who wants to. So, it's not necessary to have a degree in finance. Some employers may value industry experience, but they will value people skills and a high level of motivation more.
If the person already works at a financial institution, that institution may pay for the qualification. If the person does not already work in the field, it is likely that they will have to pay for their own study materials and exams.
Even though the study materials are meant to be used at home, there are also courses offered by private training institutions to help people who may not be able to pass the exams on their own become mortgage brokers. People who don't know much about the financial services industry or how money works in the UK may find these courses especially helpful. Even though the courses can be expensive, they are made to help students pass their exams quickly so they can start working as soon as possible in the field.
How to Get Certified as a Mortgage Broker
After taking their exams, a person learning to be a mortgage broker will have to do a certain amount of supervised work. Depending on how the business the trainee works for is set up, they may also have to take a few tests within the company. Once the employer is sure that the trainee can work without supervision, they will ask the FSA to let the person become a qualified mortgage broker.
For the mortgage broker to keep their licence, they will have to take part in continuing professional development. Most of the time, this means continuing to learn about the mortgage industry in a structured way.
More Education and Certifications
There are also a number of post-graduate courses that qualified mortgage brokers can take to improve their credentials. The Chartered Insurance Institute and the Institute of Financial Services both offer these kinds of classes. They include the Advanced Certificate in Mortgage Advice and Practice (Adv CeMAP) and special qualifications for mortgage products like lifetime mortgages and commercial mortgages.
Mortgage brokers can also use their skills and experience to start a career in financial planning. This will require you to pass a few more tests and work as a trainee financial advisor under supervision. Financial advisors help their clients with insurance, investments, and planning for retirement, among other things.
It is not necessary to get more qualifications, though, and many mortgage brokers have long and successful careers giving advice about mortgages without doing so.
