How much does a mortgage adviser make?

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.

As a rough guide, newly qualified advisers typically start on between £25,000 and £30,000. Once you’re established, most advisers earn between £40,000 and £55,000 within two to three years of qualifying, once commission is included, and strong performers at commission-heavy brokerages can earn £60,000 to £90,000 or more.

These figures are based on a mix of salary data from Glassdoor, Indeed and industry recruiters, and represent employed mortgage advisers. Bear in mind that self-employed advisers, and those on commission-heavy structures, can earn considerably more, some top earners exceed £100,000, though this is less common.

How do mortgage advisers get paid?

Mortgage advisers receive income in a number of different ways. Employed advisers take home a basic salary along with commission based on the mortgages they successfully complete on behalf of their clients. Other advisers are self-employed and receive income on a commission basis. So, for each mortgage they complete for their customers, they receive commission from the lender.

Commission is usually based on the procuration fee paid by the lender, typically around 0.35% of the mortgage value, which the adviser or their firm then shares.

In some cases, advisers might also charge their customers a fee for their services and for arranging the mortgage. This could be 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.

Does location affect earnings?

Yes. Advisers in London and the South East typically earn 15 to 25% more than the national average, largely because higher property prices mean higher mortgage values, and therefore higher commission per case, rather than a higher fee rate. It’s worth weighing this against the local cost of living, some advisers who qualify in London later relocate for a better overall financial position, even on a lower headline salary.

A flexible career

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 completing mortgages on behalf of clients involves a lot of work. Firstly, if you are a self-employed adviser, 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.

Additional Financial Services courses

Whichever career path you take, there are various ways to enhance your professional development. For example, our Certificate in Equity Release (CeRER) allows qualified mortgage advisers 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.

You could also choose to broaden your area of expertise and offer advice on a wider range of Financial Services products. In this case, our Diploma for Financial Services (DipFA) course will give you all the technical knowledge and skills you need.

There’s no simple answer to how much a mortgage adviser makes. Your earnings will hinge on the direction you choose, how hard you’re willing to work, and how you’re paid, whether that’s a steady salary or a commission-led structure with a higher ceiling. In many ways, your biggest limiting factor is your own ambition.

You can book your CeMAP, CeRER or DipFA course online through our Financial Services course pages. If you have any queries or require help with planning your studies, please feel free to get in touch with our friendly Student Support team by email at [email protected] or on Freephone 0808 208 0002.