As a result of the continued credit crunch, it has been speculated that trainees had found it harder to find jobs and that firms were scared of expending resources on new blood in the industry during the current climate.
It has also been suggested that training in its current format takes too long, which has further dissuaded firms from promoting the idea of boosting its workforce with trainees.
Hugh Nichols, proprietor at Badbury Berkeley Financial Services, said: “People won’t take trainees on because it’s a nightmare to train people up, due to the length of time that it takes. Many haven’t got the skill sets needed to train others and there has also been a move to a more target-based approach to training.”
Nichols added that redundancies had meant that firms looking to recruit would be able to take on individuals with more experience of the market.
Commenting on the issue, Richard Farr, director at the Association of Mortgage Intermediaries (AMI) admitted that firms were being prudent in the current climate, but insisted that the industry remained committed to developing new advisers to carry the sector forward.
He explained: “Some firms will be looking at size and it is inevitable that in the current climate there are going to be some redundancies.
"Some firms will be smaller, but fitter in 12 months’ time, but people still move around and if firms are recruiting then they will be looking at the best out there.”
Farr added that training initiatives and schools were still seeing take up from those interested in entering the mortgage advice business, and that AMI, lenders and other institutions remained committed to introducing new blood into the industry, but he confirmed that prudence would be the key word for 2008.
