How to Overcome Common Challenges as a Mortgage Advisor: Real Industry Insights

At Placing Faces, we’ve been closely following the discussions in the mortgage advisor community to stay up-to-date with the challenges many professionals face. Whether you’re just starting out or you’ve been in the industry for years, there’s always something new to adjust to! Here are some of the most talked-about topics (taken from several weeks of doom-scrolling the many mortgage advisor forums and Facebook groups), along with our insights on overcoming these hurdles…

Challenge 1: Network Referencing Delays

Issue:One of the most frustrating experiences for mortgage advisors is dealing with delays during the referencing process. The FCA recommends a maximum of 6 weeks for network referencing, but many advisors have reported wait times extending well beyond this.

Solution:

• Proactive Communication: Stay in regular contact with both your old and new networks. Don’t wait until you’ve exceeded the 6-week mark - set expectations early and make sure both parties are aware of the time-sensitive nature of your transition.
• Documentation: Keep detailed records of all correspondence, whether through emails, phone calls, or formal complaints. This will help you escalate the matter efficiently if needed.
• Client Transparency: It’s also essential to manage your clients’ expectations. Keep them informed about the delays, so they are aware of potential setbacks in their application process.

In an FCA review, it was noted that over 25% of brokers who change networks experience longer-than-recommended delays. As mortgage advisors, planning ahead and using the 6-week period to begin transitioning clients can help maintain income flow during this period.

Challenge 2: AR vs DA – Which Route is Best for You?

Issue: One of the biggest decisions mortgage advisors face when entering the industry or transitioning is whether to become an AR (Appointed Representative) or go DA (Directly Authorised).

Solution: Both options have their merits, but understanding the differences is crucial:

• Appointed Representative (AR): As an AR, you’ll work under the umbrella of a network authorised by the FCA. This network provides compliance, case-checking, and support, but in return, they take a percentage of your commission. The advantage here is reduced risk and lower upfront costs. Stat: AR firms generally take a 10-30% cut of your commission depending on the services they provide .
• Directly Authorised (DA): A DA broker is fully authorised by the FCA to operate independently. You keep 100% of your commission, but you’re responsible for all compliance and regulatory costs. This route is typically for more experienced brokers who want full control over their operations.

Which Path to Choose?

• New Advisors: For newcomers, becoming an AR offers structured support, which can be crucial when starting out. The safety net provided by a network can help build your confidence and give you access to shared resources.
• Experienced Advisors: If you’ve been in the industry for a few years and have built a solid client base, going DA might make more sense. With DA status, you have the freedom to grow your business without splitting your commission.

Ultimately, your decision should align with your long-term career goals. If you’re unsure, there are plenty of really useful Facebook groups for voicing queries.

Challenge 3: Transitioning into Mortgage Advice

Issue: Transitioning into mortgage advice can be a daunting process, especially if you’re moving from an entirely different industry. Many new advisors mistakenly believe that passing their CeMAP (Certificate in Mortgage Advice and Practice) exams is the biggest hurdle. However, gaining CAS and hands-on experience is where the real challenge begins.

Solution:

• Building a Strong Network: Whether you’re transitioning from another sector or you’re fresh out of your CeMAP, having a network of industry professionals who can offer guidance is invaluable. Engaging with forums, LinkedIn groups, and even finding a mentor can help you navigate the early stages. Fact: Nearly 70% of mortgage advisors agree that a mentor or peer support system was essential to their early career success.
• Securing Competent Adviser Status (CAS): To achieve CAS, you’ll need to be assessed by your network or employer on your ability to give mortgage advice. This process can take several months, and having a supportive environment is crucial for successfully passing.

Tip: We suggest working under an experienced advisor or joining a network that offers comprehensive CAS training to ensure you gain the practical skills needed to succeed.

Challenge 4: Becoming a Self-Employed Mortgage Advisor

Issue: Making the leap from being employed to self-employed as a mortgage advisor comes with its own set of challenges, from finding introducers to setting your fees. Many mortgage advisors dream of going self-employed to have more control over their work-life balance and income. However, taking this step requires careful planning.

Solution:

1. Finding Introducers: Introducers are critical to building a self-employed mortgage business. These are individuals or businesses who refer clients to you, usually in return for a fee. Common introducers include estate agents, accountants, and financial planners. You can start building relationships with introducers while still employed, so when you go self-employed, you’re ready to hit the ground running. Fact: 63% of self-employed mortgage advisors say that introducers are their primary source of leads .
2. When and How Much to Pay Your Introducers: The industry standard for introducer payments varies but is often a 10-20% commission per lead converted to a deal. Payments can be made upon client sign-up or after successful mortgage exchange, depending on the agreement.
3. Setting Your Broker Fees: With just 6 months of experience, it’s wise to keep your broker fees competitive. Many networks allow advisors to charge anywhere from ￡0 to ￡1400 per case, but starting on the lower end until you’ve built a solid track record is advisable.

Tip: Start with lower fees while building your brand. As you gain more experience and a client base, you can gradually increase your rates to reflect the value you bring.

At the end of the day...

The mortgage industry comes with its own set of challenges (trust us - we've heard it all), but the good news is that you're never alone. From network delays to deciding whether to become an AR or DA, and transitioning into self-employment, there’s a supportive community of advisors ready to share their experiences and insights with you.

If you’re looking for your next step - whether it’s a trainee role, a senior advisor position, or guidance on becoming self-employed - our team at is here to help!

To view a range of roles we’re currently hiring for, please visit the following link to our jobs page!

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Sources:

1. Financial Conduct Authority, Review of Network Processes and Delays.
2. Mortgage Strategy, AR vs DA: Choosing the Best Route for Your Career.
3. The Association of Mortgage Intermediaries, Mentorship and Networking Survey.
4. Financial Reporter, The Role of Introducers in a Self-Employed Mortgage Business.