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Appointed Representative broker employment moves post mini-Budget

Journalist: Victoria Hartley, Mortgage Solutions

ended 30. March 2023

The only listed UK mortgage advice firm  Mortgage Advice Bureau reported falling numbers of Appointed Representatives after ‘firms reacted to the September 2022 market shock’ (mini Budget) but it expects numbers to stabilise and increase again from Q2.

Looking for AR mortgage advice business owner views on hiring and firing practice during market turbulence. Why fire only to recruit again six months later? Would you consider redeploying/making self employed? Looking for success stories on how to manage staff numbers without redundancies.

 

 

3 responses from the Newspage community

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Justin Moy
Managing Director at EHF Mortgages
I wouldn't say this was specifically an issue for AR firms, but the wider mortgage business community. With recent reductions in mortgage applications due, and a significant shift to Product Transfers, we are seeing reduced incomes which makes it difficult to take on new advisers and support staff. Regulatory costs, network fees, FCA levys and other essentials won't reduce I am sure, so we are having to look at the wider cost of running our businesses. Many brokers would have only seen low mortgage rates, and may not have the experience of previous financial turbulance, so those who have recently qualified may struggle, and inevitably need to look for a different career outside of mortgages or financial services, to bring in a suitable income.
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Adam Smith
Founder at Alfa Mortgages
When you make a business decision to hire someone, this should not be taken lightly. Staff generally join firms with the view to stay there for a while, so that they can develop and grow both professionally and personally. Simply, firing them due to market turbulence in my opinion is short-sighted and cruel, when all said and done, we are dealing with people’s lives.
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Austyn Johnson
Founder at Mortgages For Actors
Self employed and contracted to principle. Your income is your responsibility and you get back, what you put in. Its a win for the firm as very little outgoing if there isn't much work, but amazing for the s/e brokers as they can get stuck in to marketing themselves and earn more. Commissikb split is usually much higher for s/e. Then diversify and keep visible. People buy from people, so use your individual 'charm' to keep your biz flowing. If you really can't do it, maybe a new job or training program on self marketing?