Empowering the Freelance Economy

More estate agents and career shifters turning to self-employment in 2023

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Brokerage Just Mortgages has hired 48 new advisers in the first quarter of 2023, a sign that its self-employed division is doing something right. What do you need to do to become a self-employed mortgage adviser or broker?

Since launching its self-employed division in 2016, Just Mortgages has attracted 500 self-employed mortgage advisers and is looking to see that number rise to 700 by the end of 2023.

“It’s fantastic to see such strong recruitment levels and sustained demand for self-employed, especially given everything that has happened in the last nine months or so,” said Carl Parker national director at Just Mortgages, in a Mortage Introducer report.

Parker said 2023 has been a “transformative year” for its self-employed division.

Self-employment in the UK has been rising over the past decade. There have been blips where self-employed numbers have gone down in recent years though due to the pandemic and IR35 and Off Payroll rules forcing hiring companies to push people into PAYE roles through unregulated umbrella companies.

However, IPSE has looked at the 2021 Census more closely and highlighted that 748,000 people were self-employed with employees whilst 3.8 million were self-employed without employees. This closely aligns with the findings from IPSE’s Self-Employed Landscape Report for 2021, which found that there were just over 4 million solo self-employed individuals operating in the UK.

What certs do you need to be a self-employed mortgage adviser?

You can go two routes to become qualified, which will each cost you between £500 and £600. The time you would need to set aside to complete the certification is between six and 12 months, according to Counting Up, an e-bank for small businesses.

Being qualified is a legal obligation and if you don’t you could run into serious problems with clients. If you are self-employed you will need to purchase special insurance for your peace of mind and those of your clients and agency.

What is the average salary of a mortgage broker/adviser?

We looked to recruitment site Ranstad to see if we could find the average salary of a mortgage adviser.

Here’s what we found:

  • 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.
  • Randstad says 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.”

However, once you are self-employed your earning potential is up to you. It will be competitive as there will be other self-employed advisers with their own networks, too. You will have overheads like office rent.

Build your profile as a mortgage adviser: get quoted in the media

Like any self-employed person you will have your own set of contacts, but to build new connections you have to get yourself out there. One way to do this is to become an expert in the media. You can share your insights and tips with a wider audience. If you get quoted you can share your digital media clippings on social media and on groups that may attract your ideal customer.

Riz Malik, Director of R3 Mortgages, gets coverage in the mainstream press. He has useful information to tell journalists and TV audiences and he isn’t afraid to give some cracking quotes.

But like most self-employed people he is coming to terms with a balanced lifestyle.

When Malik finished his MBA, he was determined to build a financial services business and scale rapidly. But reality sank in.

“Over the years, I have come to the realisation that the sacrifices that are needed to do that are not for me,” says Malik. “You can still be successful without being a unicorn but it depends on your definition of success.

“Success to me is dealing with a smaller number of clients to whom I can give outstanding service, and I can be ‘present’ for my family. I deal with some exceptional entrepreneurs who have amazing businesses but I can also see the toll it takes on their health and family life,” he says.

Check out some of Malik’s press coverage here.

If you can’t afford a PR there there is an alternative platform for small business owners you could consider called Newspage.

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