what is a mortgage broker?

As a mortgage broker, you simplify the process of getting a mortgage loan for businesses or people. You connect mortgage lenders with borrowers without using your funds to establish a relationship. Mortgage brokers educate themselves on the borrower's financial standing and help them find the ideal lender with affordable interest rates for their budget.

You assist with the mortgage application process by collecting the relevant documents from the borrower and passing them along to the lender for processing. With the information you collect from the borrower, you can estimate the amount they qualify for and submit the financing applications to the lender for approval.

Since you act as a liaison, you receive an origination fee once the funds are loaned to the borrower. The lender or borrower usually pays the origination fee, depending on the terms of the contract.

what does a mortgage broker do?

Your work as a mortgage broker is to save borrowers' time and effort in searching for a lender. Since you have a great deal of information about repayment terms, administrative fees and other costs in the contract. As a mortgage broker, you are well acquainted with trusted lenders and can obtain good rates for borrowers. Most financing providers prefer working with borrowers with brokers.

Would working as a mortgage broker suit your financial acumen? Then read on to find out what competencies and qualifications you need to thrive in a mortgage broker role.

mortgage broker jobs

average mortgage broker salary

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. 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.

what factors affect the salaries of mortgage brokers?

The compensation package for mortgage brokers varies depending on the experience level. Mortgage brokers joining the field earn less due to their minimal experience. As you improve your experience and knowledge in financing, your earnings increase. The brokerage services you provide can also affect your commissions and compensation package. For instance, tied mortgage brokers provide brokerage services for seeking mortgages in specific banks or finance institutions. Independent mortgage brokers are likely to take home higher commissions since they aren't tied to any company or bank. Sometimes, the location also influences your earnings since working in major cities with a high cost of living attracts higher salaries than in smaller towns.

male working from home looking at the screen.
male working from home looking at the screen.

types of mortgage brokers

Some of the types of mortgage brokers include:

  • tied mortgage brokers: as a tied mortgage broker, you work for a single lender. That means you work for a bank or building society that provides mortgage financing. Your job is to negotiate the terms on behalf of the borrower and speed up the mortgage application process. Sometimes, you also recommend borrowers to a limited list of lenders provided by your employer.
  • independent mortgage brokers: as an independent mortgage broker, you serve the entire financial market. You are not tied to any building society or financial institution. That means you provide a range of lenders for borrowers and research the market for the best interest rates and favourable terms.

working as a mortgage broker

Working as a mortgage broker, you provide expert advice to borrowers and help them secure financing for their investments. Read on for details on work schedules and career prospects of mortgage brokers.


education and skills

Some of the routes for becoming a mortgage broker include:

  • college course: before becoming a mortgage broker, it is important to complete a college course to learn important aspects of a mortgage application. Some courses to pursue are Level 3 Extended Diploma in business and T Level in finance. The courses require at least 4 or 5 GCSEs in grades 9 to 4.
  • apprenticeships: join the profession by training through an advanced apprenticeship that takes 12 months to complete. The apprenticeship combines coursework and on-the-job training.
  • work experience: to become a mortgage broker, you require a few years of work experience in an entry-level position. You should also register with the Financial Conduct Authority to become an approved mortgage broker.

mortgage broker skills and competencies

Some of the qualities of a mortgage broker include:

  • customer service skills: as a mortgage broker, you spend most of your time maintaining relationships with borrowers and lenders. Hence, good customer service skills are vital in the role. It is important to be a good listener and patient when explaining complicated legal and financial concepts. Customer service skills help you make the borrowers comfortable throughout the mortgage application.
  • critical thinking skills: as a mortgage broker, it is crucial to stay updated with the current mortgage and housing trends. That means you should gather statistics and information related to lending options to ensure you provide the best advice to borrowers. Critical thinking skills are crucial in choosing the most viable options for clients.
  • communication skills: as a mortgage broker, you require great written and verbal communication skills to handle the mortgage application process. Good communication skills help you explain the request to customers and collaborate with other professionals in the industry to ensure the process progresses smoothly.
  • negotiation skills: as a mortgage broker, you act as the liaison between the lender and borrower. That means you strive to achieve the best outcome for both parties. Negotiation skills help you negotiate the mortgage interest rates and repayment terms to ensure the borrower gets the best terms and financing.


FAQs about working as a mortgage broker

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