Want to Become Self-Employed?
If you've been considering the leap into self-employment, you're not alone. Many people, especially those currently working for banks, building societies, estate agents, or other brokers, feel constrained by set hours, micromanagement, and a lack of autonomy. Does this sound familiar? Are you fed up with being told what hours to work, where to work, and how to perform your tasks? Do you feel strangled and suffocated by micromanagement? If so, becoming a self-employed mortgage adviser might be the right path for you.
Employed vs Self-employed Mortgage Advisers
Advantages of Being an Employed Mortgage Adviser
- Guaranteed Minimum Income: Provides financial stability and peace of mind.
- Paid Holidays: Allows for time off to recharge and relax.
- No Tax Returns: No need to worry about completing tax returns, as taxes are deducted automatically from your salary.
- Management Support: Access to management support and guidance, helping to develop skills and progress in the role.
- Other Benefits: Potentially having access to additional benefits, such as healthcare or pension plans, depending on the employer's offerings.
Disadvantages of Being an Employed Mortgage Adviser
- Job Security: Potentially less job security, as you are dependent on your employer for income and may be at risk of losing your job if the company faces financial difficulties.
- Micromanagement: Less autonomy and independence in decision-making.
- Less Flexibility: Less flexibility in your work schedule and location, depending on the employer's policies and requirements.
Advantages of Being a Self-employed Mortgage Adviser
- Tax Efficiency: You can deduct business expenses from your taxable income.
- Flexibility: Greater flexibility in working hours and location, allowing for a better work-life balance.
- Higher Earning Potential: Unlimited earnings potential, as you are not limited by a set salary and can earn more based on your own efforts and success.
- More Commission: Keep all of your earnings as you are your own boss.
Disadvantages of Being Self-employed
- No Paid Holiday or Sick Leave: This can impact your income and ability to take time off work.
- No Pension: You must manage your own retirement savings and planning.
Employed or Self-employed?
That is the Question
The decision to become an employed or self-employed mortgage broker is a personal one that depends on multiple factors, including your financial situation, level of experience, motivation, and the options available to you.
There are different types of self-employed mortgage brokers as well. Some individuals choose to be self-employed for a brokerage that provides them with leads, and while they may not have a basic salary, they take a percentage of the commission, which is usually a larger percentage than if they were employed. Alternatively, some choose to set up their own company and take all of the commission, which can offer more autonomy and control over their business but require you to find all of the leads.
Ultimately, the decision to become a self-employed mortgage broker requires careful consideration of the potential benefits and drawbacks, as well as a strong understanding of the industry and market.
Leads Provided
Some mortgage companies provide all the leads to their self-employed brokers, which can offer more certainty regarding the level of business. However, companies that require their brokers to source their own leads often offer higher commission splits. Alternatively, some companies offer a hybrid model where brokers receive a combination of leads from the company and generate leads on their own.
How to Self-generate Leads
- Social Media: Using social media platforms like LinkedIn, Twitter, and Facebook can be a great way to connect with potential clients and generate leads. You can also create and share content to establish yourself as a thought leader in the industry.
- Buying Leads: There are companies that specialise in selling mortgage leads to brokers. This can be a convenient way to get a steady stream of leads, but it can also be expensive and the quality of leads may vary.
- Introducers: Building relationships with estate agents, independent financial advisers (IFAs), and other professionals who may refer clients to you can be an effective way to generate leads.
- Networking: Attending industry events and networking with other professionals can help you build relationships and generate leads. You can also join industry groups or associations to expand your network.
- Marketing: Creating targeted marketing campaigns can help you reach potential clients and generate leads. This can include online advertising, direct mail, or email marketing.
- Referrals: Satisfied clients can be a great source of referrals.
Clearly, these are important decisions and as such you should take advice and conduct your research prior to finalising.
FAQs
What are the benefits of being a self-employed mortgage adviser?
Benefits include tax efficiency, greater flexibility in working hours and location, higher earning potential, and retaining all your earnings as you are your own boss.
What are the disadvantages of being a self-employed mortgage adviser?
Disadvantages include no paid holidays or sick leave, no pension, and potential difficulties in securing a mortgage due to perceived income instability.
How does being an employed mortgage adviser compare to being self-employed?
Employed advisers have guaranteed income, paid holidays, no tax returns, and management support but face micromanagement and less flexibility. Self-employed advisers enjoy more autonomy and potentially higher earnings but lack job security and benefits.
What factors should I consider when deciding between being employed and self-employed?
Consider your financial situation, level of experience, motivation, and the type of support and leads available from potential employers or as a self-employed adviser.
How can I generate leads as a self-employed mortgage adviser?
Generate leads through social media, buying leads, building relationships with introducers, networking, targeted marketing campaigns, and referrals from satisfied clients.
Do some companies provide leads for self-employed mortgage advisers?
Yes, some companies provide leads, offering more business certainty. Others may require advisers to source their own leads but offer higher commission splits. Some offer a hybrid model.
What kind of support does Advice Solutions offer to self-employed mortgage advisers?
Advice Solutions offers guidance and support to help mortgage advisers succeed in their mortgage advice business. Contact them via phone or email for more information.
How does self-employment affect my tax situation as a mortgage adviser?
Self-employed mortgage advisers can deduct business expenses from their taxable income, which can provide significant tax benefits compared to being employed.
Need Advice?
Speak to Our Team Today
We at Advice Solutions never forget it is YOUR business we are there to support and guide. If you're ready to take the next step and run a mortgage advice business, contact our mortgage advice network today.
Call us on 07785 954074
Email us via kbl@advicesolutions.co.uk.
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