Is Self Employment for you?
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.
Remember: We're in this Together...
Advantages and Disadvantages of Being an Employed Mortgage Adviser
Advantages
- Guaranteed Minimum Income: Receive a steady, reliable salary each month, offering financial stability.
- Paid Holidays: Enjoy time off to relax and recharge, without losing income.
- No Tax Returns: Your employer takes care of tax deductions, so you avoid the stress of filing self-assessment tax returns.
- Management Support: Access guidance and professional development opportunities through structured support from management.
- Additional Benefits: Depending on your employer, you may also receive healthcare, pension contributions, or other workplace benefits.
Disadvantages
- Job Security Concerns: Dependence on your employer for income means you may be affected by redundancies or company financial struggles.
- Micromanagement: Experience less independence or autonomy, with your workflow often closely monitored or managed by others.
- Less Flexibility: Your working hours and location are typically dictated by employer policies, limiting your control over your schedule and work environment
Advantages and Disadvantages of Being a Self-employed Mortgage Adviser
Advantages
- Tax Efficiency: The ability to deduct business expenses can reduce your taxable income.
- Flexibility: Freedom to choose your own working hours and location, supporting a better work-life balance.
- Higher Earning Potential: No fixed salary cap; your income is based on your own effort and client base.
- More Commission: You keep all your earnings as you are your own boss.
- Autonomy: Full control over business decisions and how you operate day-to-day.
Disadvantages
- No Paid Holiday or Sick Leave: Any time off comes at your own expense, impacting your income.
- No Pension Provided: You must arrange your own retirement savings and plan for the future independently.
- Income Uncertainty: Earnings can fluctuate, especially when you're getting started.
- Administrative Responsibility: All business management, including tax returns and compliance, falls on your shoulders.
- Need to Self-generate Leads: You'll need to actively find and convert your own clients unless supported by a brokerage.
Employed or Self-employed?
So, which path is right for you,employed or self-employed? The answer isn't the same for everyone. Your decision should reflect your financial situation, level of experience, thirst for independence and where your personal motivations lie. Some advisers thrive on the security and support structures of employment, while others seek the independence and earning potential of self-employment.
You can choose to work as a self-employed adviser for a brokerage that supplies leads, retaining a higher proportion of commission than if you were salaried. Alternatively, you could launch your own business, enjoy complete control of operations and retain all commissions, though finding your own clients becomes essential. Whatever route you consider, our Adviser Circle are available to offer impartial guidance and help you understand every implication before you leap.
Leads Provided, and How to Self-Generate Leads
Leads Provided
Some mortgage firms provide their self-employed advisers with all their leads, providing a steady stream of business opportunities. This can be attractive if you're starting out and want assured work. However, companies that expect you to bring in your own clients often offer better commission splits. There's also a hybrid approach, where you benefit from both company-supplied leads and your own lead-generation activities, maximising your potential.
Social Media
A powerful tool for an independent mortgage adviser is social media. Platforms like LinkedIn, Twitter and Facebook allow you to connect with potential clients, share your expertise and develop a reliable reputation. Regularly creating and sharing insightful content can help establish you as a knowledgeable and approachable authority.
Buying Leads
Several specialist companies offer to sell mortgage leads direct to advisers. While this can help you quickly access prospects, it comes at a price, and you'll need to assess the quality of leads on offer to ensure they're worthwhile.
Introducers
Building strong professional relationships is invaluable. Independent financial advisers, estate agents and other professionals are great introducers who can refer clients directly to you, supporting a steady flow of business.
Networking
Attending industry events puts you in direct contact with other professionals, broadening your network and generating business organically. Being active in industry associations also increases your credibility and reach.
Marketing
Direct campaigns,such as online ads, email marketing, and mailshots,can place your services in front of potential clients, raising your profile and securing enquiries. Well-targeted marketing supports a regular pipeline of leads.
Referrals
Delivering independent and reliable advice means satisfied clients will naturally recommend you to friends and family. Word-of-mouth remains one of the most effective and credible means of lead generation for any adviser, especially those who are new to self-employment.
Becoming a self-employed mortgage adviser for the first time is a significant decision, requiring careful thought about where leads will come from and how you'll maintain a consistent flow of business as you grow.
Frequently Asked Questions
What are the benefits of being a self-employed mortgage adviser?
Benefits include tax efficiency, flexible hours, higher earning potential, and keeping all your commission as your own boss.
What are the disadvantages of being a self-employed mortgage adviser?
You won't have paid holidays, sick leave, or a pension scheme, and income can be less predictable.
How does being an employed mortgage adviser compare to self-employment?
Employed advisers get a steady salary and benefits but less autonomy. Self-employed advisers gain freedom and greater earning potential but more risk.
What factors should I consider when choosing between being employed and self-employed as a mortgage adviser?
Consider your finances, experience, risk tolerance, and whether you want support or more independence.
How can I generate leads as a self-employed mortgage adviser?
Use social media, buy leads, build introducer relationships, network at events, run marketing campaigns, and encourage client referrals.
Do some companies provide leads for self-employed mortgage advisers?
Yes, some companies supply leads, some expect you to generate them, and others offer a hybrid solution with both.
What kinds of support does Advisors Circle offer to self-employed mortgage advisers?
Advisors Circle offers independent advice, help with business setup, networking, and ongoing support for new mortgage advisers.
How does self-employment affect my tax situation as a mortgage adviser?
You can deduct business expenses from taxable income, increasing tax efficiency compared to being employed.
Want to Become Self-Employed? Let Us Help
If you're thinking about becoming a self-employed mortgage adviser for the first time, it's essential to understand the benefits and challenges. Our Adviser Circle provides independent, impartial guidance to help you make the right choice. We're qualified, experienced and fully accredited, offering support whether you're going it alone or exploring your next move.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE OR OTHER LOANS SECURED AGAINST IT.
THERE MAY BE A FEE FOR MORTGAGE ADVICE, THE PRECISE AMOUNT WILL DEPEND ON YOUR CIRCUMSTANCES, OUR TYPICAL FEE IS £395
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Mortgage and More is Authorised and Regulated by the Financial Conduct Authority. The Financial Service Register Number is 651274
The Financial Conduct Authority does not regulate some forms of Buy to Lets.
There may be a fee for mortgage advice. The precise amount will depend on your circumstances, but will be agreed with you before proceeding.
Mortgage and More is a Limited Company. Registered Address: Mortgage and More; 9 Balas Drive, Siitingbourne, Kent. ME10 5AS Registered in England and Wales under number 06437752
We always aim to provide a high-quality service to our customers. However, if you encounter any problems, in the first instance please write to the registered address above, email or call Mortgage and More outlining your complaint, if we are unable to resolve this, you can take your complaint to an independent Ombudsman. Our advice is covered under the Financial Ombudsman Service (www.http://www.financial-ombudsman.org.uk/consumer/complaints.htm).
The guidance and/or information contained within this website is subject to the UK regulatory regime and is therefore targeted at consumers based in the UK. Some calls maybe recorded for training and monitoring purposes.