How Mortgage Brokers Qualify

Qualified mortgage brokers must undergo a series of exams and receive some on-the-job training and experience.

Because all financial advice in the UK is regulated by the Financial Services Authority (FSA), mortgage brokers fall under the stewardship of the regulator. The FSA has determined that mortgage brokers must complete one of the approved qualifications and receive training and guidance from other qualified advisors before becoming authorised mortgage brokers.

Once mortgage brokers are authorised, they may advise their clients in all matters relating to mortgages within a bank or building society, a mortgage brokerage, an estate agency, or they may establish their own practice and work on a self-employed basis.

The first step to becoming a mortgage broker is to pass one of several qualifications that are recognized by the FSA. They include the Certificate in Mortgage Advice from the Chartered Insurance Institute, the Certificate in Mortgage Advice and Practice from the Institute of Financial Services, or the Mortgage Advice and Practice Certificate from the Chartered Institute of Bankers in Scotland (Scotland only).

If the individual is already working for a financial institution their employer may cover the costs of the qualifications. The study involved in passing the subjects for each qualification can normally be completed via distance learning or through private training institutions.

Several post-graduate courses are also available that can bolster the credentials of mortgage brokers. They include the Advanced Certificate in Mortgage Advice and Practice and a qualification in lifetime mortgages.

Mortgage brokers may also use their qualifications and experience as a base to launch a career in financial advising. This will involve passing several more exams and gaining some experience as a financial advisor.

In order to maintain their qualification, mortgage brokers must participate in continuing professional development. This usually involves keeping up with the mortgage industry through some form of structured, ongoing learning.

There are no entry requirements for undertaking the mortgage broker qualifications. Therefore a finance related degree is not necessary. While some employers may consider industry experience to be beneficial, people skills and high levels of motivation are also highly regarded.

Working conditions will vary considerably depending upon whether the individual works on an employed or self-employed basis. Conditions will also vary between mortgage brokerages.