How much does a mortgage adviser make?
6 December 2023
There are many reasons to become a mortgage adviser, and one compelling reason for a lot of people is the fact that this career can be lucrative. By making sure you gain the necessary qualifications, such as the Certificate in Mortgage Advice & Practice (CeMAP), and being savvy when it comes to your career path, you stand to make good money in this type of role.
But how much can you expect to make if you go into this line of work? If you are weighing up your options and deciding whether this industry is right for you, it’s useful to have a clear idea of your earning potential as a mortgage adviser. In this post, we examine this topic in detail – and we offer tips on how to maximise your earnings.
What is the average salary of a mortgage adviser?
Unlike certain careers, such as teaching and medicine, where salaries are typically highly structured depending on factors such as your level of experience, there is a lot of variation in the earnings of mortgage advisers. This is partly a result of the diversity of roles available. For example, you can either work for an employer (such as a bank) or you can work independently. This will likely impact your earning abilities.
However, as a very rough idea of the sort of money you can expect to be making once you become an adviser, the average salary for a new starter is typically anywhere between £25,000 and £35,000, and this figure rises to £70,000 for an experienced adviser – based on a 35 to 40-hour working week.
Bear in mind that, in reality, earnings can exceed these figures. The averages are based on the standard salaries paid to employed mortgage advisers. Earning commission on top of your basic salary can increase your overall earnings.
How do mortgage advisers get paid?
Mortgage advisers are paid in a number of different ways. Some are employed and take home a salary that is supplemented by commission based on the mortgages they successfully complete on behalf of their clients. Other advisers are self-employed. These people are paid on a commission basis. So, for each mortgage they complete for their customers, they receive commission from the lender.
In some cases, advisers might also charge their customers a fee for their services and for arranging the mortgage. This might be calculated based on a percentage of the loan amount, or it might be a fixed sum.
Mortgage advisers can also receive money for other products that their clients take out alongside their home loans, such as life insurance.
One of the big selling points of becoming a mortgage adviser is the fact that it can give you a lot of freedom in terms of how you earn your money and how much you make, particularly if you work on a self-employed basis.
That said, it’s important to be aware of the fact that there is a lot of work involved with completing mortgages on behalf of clients. Firstly, if you are self-employed, you might have to generate leads yourself, which means putting time and effort into promoting your services and attracting clients. Then there is the paperwork associated with completing mortgages, and the communication you have with clients, lenders, solicitors and so on.
You should factor all this in when you are estimating how many mortgages you might be able to complete in any set period of time, and therefore how much money you can expect to earn. You might find that as you become busier as a self-employed adviser, you could benefit from hiring someone to provide assistance with administrative tasks. This could make it easier for you to grow your business and boost your earnings.
Opportunities to advance your career and earn more
There are plenty of opportunities to advance your career in the field of mortgage advice. If you are working for an organisation such as a bank, you might be able to increase your earnings by seeking promotions, or moving to a different employer that offers a better remuneration package. You might also decide to move into a more specialist niche, such as commercial mortgages.
As outlined above, another way to take control over your career and your earnings is to become self-employed. With enough experience, you might even decide to start your own mortgage brokerage, meaning you lead a team of independent mortgage advisers.
Whichever career path you take, there are various ways to enhance your professional development. For example, our popular AdviserSkills course is designed to develop the soft skills you need in order to thrive in this field. It covers everything from enhancing customer service capabilities to improving negotiating and influencing skills. Extra learning like this can make you more confident and effective in your role, and this can have a big impact on your earning potential.
We also offer a Certificate in Equity Release (CeRER), which is aimed at qualified mortgage advisers who are looking to expand their professional skillset into offering equity release advice. Once you have completed this course, you will be fully qualified to provide your clients with advice in the rapidly growing market of equity release.
As we have outlined in this post, there is no simple answer to the question of how much mortgage advisers make. Your earnings in this career will hinge on factors including the specific direction you want to take and how hard you are willing to work. In many ways, you are only limited by your own ambition.