what is a mortgage broker?
As a mortgage broker, you simplify the process of getting a mortgage loan for businesses or people. You connect mortgage lenders with borrowers without using your funds to establish a relationship. Mortgage brokers educate themselves on the borrower's financial standing and help them find the ideal lender with affordable interest rates for their budget.
You assist with the mortgage application process by collecting the relevant documents from the borrower and passing them along to the lender for processing. With the information you collect from the borrower, you can estimate the amount they qualify for and submit the financing applications to the lender for approval.
Since you act as a liaison, you receive an origination fee once the funds are loaned to the borrower. The lender or borrower usually pays the origination fee, depending on the terms of the contract.
what does a mortgage broker do?
Your work as a mortgage broker is to save borrowers' time and effort in searching for a lender. Since you have a great deal of information about repayment terms, administrative fees and other costs in the contract. As a mortgage broker, you are well acquainted with trusted lenders and can obtain good rates for borrowers. Most financing providers prefer working with borrowers with brokers.
Would working as a mortgage broker suit your financial acumen? Then read on to find out what competencies and qualifications you need to thrive in a mortgage broker role.
mortgage broker jobsaverage mortgage broker salary
According to National Careers, the median salary of mortgage brokers ranges from £22,000 to £70,000 per year. Entry-level mortgage brokers joining the field start with a salary of between £22,000 and £25,000 annually. Your compensation package increases with a few years of experience. Your earnings will range from £45,000 to £60,000 per year. Highly experienced professionals in the field take home huge salaries of over £70,000 annually. Aside from the basic salary, mortgage brokers also earn commissions for every successful loan application and approval. Some companies also provide perks like transport allowances and medical insurance.
what factors affect the salaries of mortgage brokers?
The compensation package for mortgage brokers varies depending on the experience level. Mortgage brokers joining the field earn less due to their minimal experience. As you improve your experience and knowledge in financing, your earnings increase. The brokerage services you provide can also affect your commissions and compensation package. For instance, tied mortgage brokers provide brokerage services for seeking mortgages in specific banks or finance institutions. Independent mortgage brokers are likely to take home higher commissions since they aren't tied to any company or bank. Sometimes, the location also influences your earnings since working in major cities with a high cost of living attracts higher salaries than in smaller towns.
types of mortgage brokers
Some of the types of mortgage brokers include:
- tied mortgage brokers: as a tied mortgage broker, you work for a single lender. That means you work for a bank or building society that provides mortgage financing. Your job is to negotiate the terms on behalf of the borrower and speed up the mortgage application process. Sometimes, you also recommend borrowers to a limited list of lenders provided by your employer.
- independent mortgage brokers: as an independent mortgage broker, you serve the entire financial market. You are not tied to any building society or financial institution. That means you provide a range of lenders for borrowers and research the market for the best interest rates and favourable terms.
working as a mortgage broker
Working as a mortgage broker, you provide expert advice to borrowers and help them secure financing for their investments. Read on for details on work schedules and career prospects of mortgage brokers.
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mortgage broker job description
Some of the tasks of a mortgage broker include:
- meeting with lenders or borrowers: as a mortgage broker, you establish professional relationships with lenders. You meet with loan officers in financial institutions to get updated information on the latest interest rates and changes to the terms and conditions. You also develop relationships with borrowers by speaking over the phone or meeting in person. When meeting borrowers for the first time, you should explain the type of broker you are.
- explaining mortgage options to clients: as a mortgage broker, you provide advice on the financing options. You assess the client's financial situation and monthly expenditure before recommending a financing option. Providing objective advice on what the client can or cannot afford is important.
- gathering necessary documents for a mortgage application: you assist the borrower in securing the financing they require by helping them in the application process. You collect the credit history documents, employment verification and bank statements to commence the application process.
- comparing lender fees: most borrowers don't understand the lenders' fees for mortgages. Your job is to explain lender fees and ensure the borrower doesn't incur hidden charges. If the client hasn't settled on a lender, you assist them in comparing the mortgage interest rates and costs to help them decide.
- assisting with general advice on the home-buying process: as a mortgage broker, you help your clients with the house-buying process. For instance, you can complete the closing paperwork with the lender and liaise with the estate agent and title company to complete the purchase process.
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work environment
As a mortgage broker, you work in a fast-paced office environment in a bank, insurance company or building society. While most brokers work in an office set-up, some also work in a remote location since they can explain the mortgage application process through phone calls. Mortgage brokers rarely travel unless they are meeting clients outside the office.
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who are your colleagues?
Whether you work for a building society or financial institution, your colleagues might include estate agents, mortgage advisers and retail bankers. You also work in close proximity to financial managers, finance analysts, finance business partners, and financial advisers, as well as other specialists that could include loan officers, relationship managers and surveyors.
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work schedule
The work schedule of a mortgage broker is usually irregular, but some work the traditional office hours. As a mortgage broker, you work up to 38 hours weekly in a full-time position. Some mortgage brokers also work nights and weekends to meet clients or lenders. When a client has a timeline for acquiring the financing, you work extra hours to speed up the mortgage approval process.
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job outlook
As a mortgage broker, you assist various clients in securing their investments. Hence, you should stay updated on the trends in the property and finance industries to provide the best advice. Mortgage brokers progress to managerial roles or become consultants in the industry after years of experience. As a mortgage broker, you may become a bank's financial adviser or credit manager. Some mortgage brokers become self-employed after gaining extensive experience in the field.
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advantages of finding a mortgage broker job through randstad
Finding your mortgage broker job through Randstad provides important advantages such as:
- a wide variety of training and development opportunities
- an experienced contact person to provide help if needed
- a range of opportunities in your area
- get paid weekly or monthly, depending on the job
- temporary and permanent contracts
Want a permanent contract? A temporary job as a mortgage broker is often a stepping stone to an attractive permanent job. Every year, thousands of people earn a permanent contract with great employers thanks to a temporary job found through Randstad. What's more, many companies recruit their permanent employees through Randstad too!
education and skills
Some of the routes for becoming a mortgage broker include:
- college course: before becoming a mortgage broker, it is important to complete a college course to learn important aspects of a mortgage application. Some courses to pursue are Level 3 Extended Diploma in business and T Level in finance. The courses require at least 4 or 5 GCSEs in grades 9 to 4.
- apprenticeships: join the profession by training through an advanced apprenticeship that takes 12 months to complete. The apprenticeship combines coursework and on-the-job training.
- work experience: to become a mortgage broker, you require a few years of work experience in an entry-level position. You should also register with the Financial Conduct Authority to become an approved mortgage broker.
mortgage broker skills and competencies
Some of the qualities of a mortgage broker include:
- customer service skills: as a mortgage broker, you spend most of your time maintaining relationships with borrowers and lenders. Hence, good customer service skills are vital in the role. It is important to be a good listener and patient when explaining complicated legal and financial concepts. Customer service skills help you make the borrowers comfortable throughout the mortgage application.
- critical thinking skills: as a mortgage broker, it is crucial to stay updated with the current mortgage and housing trends. That means you should gather statistics and information related to lending options to ensure you provide the best advice to borrowers. Critical thinking skills are crucial in choosing the most viable options for clients.
- communication skills: as a mortgage broker, you require great written and verbal communication skills to handle the mortgage application process. Good communication skills help you explain the request to customers and collaborate with other professionals in the industry to ensure the process progresses smoothly.
- negotiation skills: as a mortgage broker, you act as the liaison between the lender and borrower. That means you strive to achieve the best outcome for both parties. Negotiation skills help you negotiate the mortgage interest rates and repayment terms to ensure the borrower gets the best terms and financing.
FAQs
FAQs about working as a mortgage broker
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do mortgage brokers earn good money?
Becoming a mortgage broker is a lucrative career with an attractive salary. Experienced mortgage brokers take home over £70,000 per year. Some mortgage brokers are also paid on a commission basis by the lenders.
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is mortgage advisor a good career?
A career as a mortgage advisor is exciting and rewarding. You help people make critical financial decisions and are part of their investment journey. It is a lucrative career with real job satisfaction.
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do you need qualifications to become a mortgage broker?
While you don't need a degree to become a mortgage broker, you require post-secondary education. Aside from a diploma in finance or business courses, you should complete a qualification in mortgage advice recognised by the Financial Conduct Authority. Work experience is also important in the role.
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is a mortgage advisor a stressful job?
Working as a mortgage advisor can be stressful when you don't understand the client's needs. Sometimes, it is impossible to find a suitable mortgage for a client.
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what does a mortgage advisor do?
As a mortgage broker, you assist clients looking for mortgages to find the best financial institution with favourable interest rates. You assist clients in making financially sound decisions.
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how do I apply for a mortgage broker vacancy?
Applying for a mortgage broker job is easy: create a Randstad profile and search our job offers for vacancies in your area. Then simply send us your CV and cover letter. Need help with your application? Check out all our job search tips here!
