Brokers share their views
The Certificate in Mortgage Advice and Practice (CeMAP) serves as the cornerstone qualification for brokers seeking a licence to provide mortgage advice.
While it establishes a foundational knowledge base, some brokers have raised concerns about its adequacy in preparing advisers for the complexities they may encounter in the field.
Additionally, there is a notable gap, they claim, in ongoing professional development opportunities post-qualification, prompting questions about the industry’s commitment to fostering continuous growth and learning among its practitioners.
Are further qualifications for brokers needed?
David Sharpstone (pictured left), director at CIS Mortgage Advice, said the current state of entry into the mortgage broker profession is often criticised for its low barrier, with concerns raised about the adequacy of training and qualifications required before individuals are entrusted with providing crucial financial advice.
“Indeed, it is not uncommon for aspiring brokers to undergo an accelerated four-week CeMAP crash course before being unleashed on to the general public, armed with the authority to shape clients’ financial futures,” he said.
This rapid path to qualification, Sharpstone added, raises questions about the depth of understanding and experience possessed by newly minted brokers, particularly when confronted with complex scenarios such as clients with minor credit blemishes.
In such cases, he believes there is a risk that inexperienced brokers may default to traditional adverse lenders, without fully exploring alternative options offered by high street lenders with more flexible policies.
This oversight, Sharpstone said, could have significant implications for clients, potentially resulting in tens of thousands of pounds in additional costs over the term of their mortgage deal.
To mitigate the risks associated with inexperienced brokers, he added that there is a growing sentiment within the industry for the implementation of structured mentoring programs.
“Such programs would provide new brokers with invaluable hands-on experience and guidance under the supervision of seasoned professionals within established brokerages,” Sharpstone said.
By immersing themselves in real-world scenarios and learning from experienced mentors, he added, aspiring brokers can gain the practical skills and nuanced understanding necessary to navigate the complexities of the mortgage market.
“A mentoring period of at least a year is often suggested as a minimum requirement to ensure that new brokers are adequately prepared to offer sound financial advice and serve the best interests of their clients,” he said.
During this time, Sharpstone said they would have the opportunity to shadow experienced brokers, participate in client consultations, and familiarise themselves with the intricacies of lender policies and products.
“By investing in comprehensive training and mentorship, the industry can uphold standards of professionalism and accountability, ultimately safeguarding the financial well-being of clients and enhancing the reputation of the mortgage broker profession as a whole,” he said.
Should practical knowledge be a requirement for qualified brokers?
Austyn Johnson (pictured right), founder at Mortgages For Actors, said ensuring that brokers possess not only theoretical knowledge, but also practical competence in providing financial advice is paramount in maintaining the integrity and effectiveness of the industry.
“While passing regulatory exams such as CeMAP is a crucial milestone, it is just the beginning of what should be a comprehensive qualification process,” he said.
There is a growing recognition within the industry, Johnson added, of the need for qualifications that assess a broker’s ability to conduct fact-finding meetings with clients and subsequently match them with suitable products tailored to their individual needs.
The emphasis on practical competency in advising clients, he believes, reflects a broader acknowledgment of the significant impact that brokers’ advice can have on individuals’ financial well-being.
“In some segments of the industry, instances of subpar advice have underscored the importance of bolstering training in this area to prevent such failings,” Johnson said.
By equipping brokers with the skills and expertise necessary to navigate complex client situations and identify optimal solutions, he believes, the industry can enhance trust and confidence among consumers.
One of the critical aspects of effective advice-giving, Johnson said, is the cultivation of a client-centric approach that prioritises the needs and preferences of individuals over transactional goals.
“When clients feel valued and understood, it fosters a sense of trust and loyalty that extends beyond the initial transaction,” he said.
Conversely, Johnson added that a transactional mindset can create an atmosphere of disengagement and mistrust, making it challenging to establish meaningful long-term relationships.
By instilling a culture of care and attentiveness in the training of new brokers, he believes the industry can break down barriers and foster more positive outcomes for clients.
“Qualifications that emphasise not only technical knowledge but also interpersonal skills and ethical conduct can contribute to a more client-focused and compassionate approach to financial advice,” he said.
Ultimately, Johnson believes this shift towards client-centred professionalism has the potential to improve outcomes for thousands of individuals seeking guidance on their financial journey.
Do you believe the journey to becoming a qualified broker needs adjusting? Let us know in the comment section below.
