Should I Stay Employed or Go Self-Employed as a Mortgage Advisor?

The decision to stay employed or take the leap into self-employment is one of the biggest steps mortgage advisors face in their career. While each path has its own set of benefits and challenges, making the right decision comes down to understanding your career goals, work style, and financial aspirations.

In this blog, we’ll explore the key considerations you should make when deciding between employment and self-employment, including facts, stats, and expert advice to help guide your decision.

What Does It Mean to Be Employed as a Mortgage Advisor?

Being employed as a mortgage advisor typically means working under a firm or network. You receive a steady salary, and in many cases, you also earn commission on the mortgages you close. For those new to the industry, employment often provides a structured environment with a built-in support system.

Benefits of Employment:

Steady Salary: One of the most significant benefits of being employed is a stable income. You receive a set salary each month, regardless of how many mortgages you complete. In some cases, this salary is supplemented by a commission or bonus structure.
Support and Training: Employers often provide continuous professional development, training, and support, especially if you’re a trainee mortgage advisor or new to the industry. This support can help you gain Competent Adviser Status (CAS) and progress your career.
Fact: According to the Financial Services Skills Council, 65% of employed advisors state that employer-led training significantly improved their career prospects.
Less Risk: Being employed removes some of the financial risks of the job, as the company covers operational costs such as compliance, marketing, and back-office support.

Challenges of Employment:

Commission Splits: While some firms offer a basic salary with additional commission, others might offer commission only. In either case, your commission is typically split with your employer. This can reduce your overall earnings compared to working independently.

Limited Control: When you’re employed, you follow the processes, products, and services offered by your company. You may not have the flexibility to suggest alternative mortgage products if they fall outside the company’s partnerships.

Stat: Employed mortgage advisors often retain around 50-75% of the commission earned from a mortgage, while the firm keeps the rest. This is much lower than self-employed advisors, who typically retain 100% of their commission.

What Does It Mean to Be Self-Employed as a Mortgage Advisor?

Going self-employed means operating your own mortgage advisory business, where you have control over your clients, services, and how you operate. This independence, while appealing, also comes with added responsibility and risk.

Benefits of Self-Employment:

Higher Earnings Potential: As a self-employed mortgage advisor, you keep 100% of the commission you earn. This can lead to significantly higher earnings, especially if you build a steady client base.
Fact: On average, self-employed mortgage advisors earn 30-50% more than their employed counterparts due to commission retention.
Control Over Your Business: You have the freedom to choose your working hours, clients, and the types of mortgages you specialise in. You can work from home, rent an office, or go fully remote, depending on your preferences.
Flexibility in Growth: When you’re self-employed, there’s no cap on how much you can grow your business. Whether you want to remain a sole trader or build a team of mortgage advisors under your brand, the choice is entirely yours.

Challenges of Self-Employment:

Financial Risk: Without a steady salary, your income can fluctuate month-to-month depending on how many mortgages you close. In the early stages, when you’re building your client base, you may experience periods of low or no income.
Responsibility for Costs: From marketing to compliance and back-office support, you’re responsible for covering all operational expenses. This can include licensing costs, professional indemnity insurance, and technology platforms.

Stat: Self-employed mortgage advisors spend approximately 10-15% of their earnings on operational costs, according to a report by Mortgage Strategy .

Need for Introducers and Leads: Building a reliable source of clients is one of the biggest challenges for self-employed advisors. You’ll need to work with introducers (such as estate agents or financial planners) or invest in lead generation strategies to keep your pipeline full!

How to Find Introducers as a Self-Employed Advisor

One of the most effective ways to generate leads is by partnering with introducers. These are professionals – such as estate agents, accountants, or solicitors – who refer clients to you in exchange for a fee or commission. Building a strong network of introducers can significantly increase your client base and help you establish a steady flow of business.

How Do You Find Introducers?

Build Relationships While Employed: If you’re planning to transition from employment to self-employment, start building relationships with potential introducers early. This allows you to hit the ground running once you make the switch.
Networking and Referrals: Attend industry events, join professional organisations, and connect with other advisors and professionals in related industries to build a strong network. LinkedIn can also be a powerful tool for connecting with potential introducers.
Offer Value: Introducers want to work with advisors who can offer value to their clients. Show them how your services can enhance their business and why their clients would benefit from working with you.

How Much Do You Pay Your Introducers?

The commission you pay introducers varies, but most mortgage advisors offer 10-20% of the commission they earn from the deal. Some advisors prefer to pay introducers a flat fee per lead. Payments can be made either at client sign-up or after successful mortgage exchange, depending on the agreement.

Top Tip: Be sure to clarify payment terms and expectations with your introducers upfront to avoid any confusion or conflict later on.

How Much Should You Charge as a Self-Employed Mortgage Advisor?

Setting your broker fee as a self-employed mortgage advisor is a delicate balancing act. You want to remain competitive while also ensuring your time and expertise are fairly compensated.

If you’re just starting out, it’s generally recommended to keep your fees on the lower side. Many networks allow self-employed advisors to charge broker fees anywhere from £0 to £1400, depending on the complexity of the case and the services provided.

Stat: According to the Association of Mortgage Intermediaries, 85% of mortgage advisors charge a broker fee, with an average fee of £500 per case.

Factors to Consider When Setting Fees:

Experience: If you have less than a year of experience as a mortgage advisor, consider starting with fees in the lower range. As you gain more experience and establish a track record, you can increase your fees.
Type of Mortgage: Complex mortgages, such as those for commercial or buy-to-let properties, typically require more work and expertise, so you can justify higher fees for these cases.
Market Competition: Research the fees charged by other advisors in your area to ensure your rates are competitive.

Top Tip: Be transparent with your clients about your fees and what they cover. Clear communication builds trust and can help justify your charges, even if they’re on the higher side (you go girl, or boy!)

Final Thoughts: Which Route Should You Choose?

At the end of the day, deciding whether to stay employed or go self-employed as a mortgage advisor completely depends on your personal and professional goals.

If you value stability, a structured work environment, and the security of a salary, staying employed might be the best choice for you. However, if you’re driven by the potential for higher earnings (you get that bread!), autonomy, and the freedom to build your own brand, going self-employed could be the right next step for you.

At Placing Faces, we understand how hard it can be to make this decision. That’s why we’re here to provide guidance and connect you with the opportunities that align with your career goals, whether you’re looking for an employed role or want to take the leap into self-employment.*

*REMEMBER: our services are completely FREE of charge for candidates

If you’re unsure which route to take or need help getting through that transition from employment to self-employment, reach out to us. Our friendly team would be happy to offer advice… and plenty of job opportunities, of course!

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