Copy article

More brokers going self-employed

ended 19. August 2024

A journalist at FTAdviser is writing a piece on the recent rise in self-employed broker applications at a major broker. She's keen to know:

1. What’s driving more brokers to go self-employed?

2. What challenges do self-employed brokers face, and how can firms support them?

3. How do you see the self-employed broker role evolving in the near future?

Any thoughts, send them across.

5 responses from the Newspage community

Copy all

Copy

Editor
Stephen Perkins
Managing Director at Yellow Brick Mortgages
Being self-employed as a broker means higher flexibility on work/life balance and increased earning potential. However, to be successful you need clients and opportunities for new business, otherwise the risks of poor pay months can lead to increased stress.
Copy

Editor
Michelle Lawson
Director at Lawson Financial
Belonging to a network or being employed is a safety net for those less risk averse and those newly entering the industry. Network's and employer's processes and standards are such that they are set for the worst adviser. Once advisers then start to grow, gain more experience and see how much money is kept for this priveledge, these advisers will start to assess their options. Being self-employed in this role gives a greater flexibility, greater income but it does come with far more responsibilty and less time! I expect this to grow rather than shrink as time passes.
Copy

Patricia McGirr
Founder at Repossession Rescue Network
The explosion in social media and AI have become the catalysts for many brokers going solo, empowering them to showcase their skills and services like never before. This drive for self-employment is about breaking free from traditional firms to build personal brands and connect directly with clients. While technology opens doors, it also brings challenges in managing the business side, like compliance and lead generation. Firms can step in by providing platforms that handle these tasks, letting brokers focus on what they do best: delivering top-notch, impartial advice to borrowers in a complex and fast-changing market.
Copy

Scott Taylor-Barr
Principal Adviser at Barnsdale Financial Management
I'm a self-employed mortgage broker and always have been, both at my previous practice and of course now as the owner of my own brokerage. I did it because I wanted the extra flexibility that comes with being your own boss, rather than being at the mercy of a line manager, being able to work the hours I needed to and being able to work from where I felt most productive. Maybe that's the reason for a spike in self-employed applications, could it be people's response to being forced back into the office by employers? If it is something you are thinking of doing the Working In Mortgages website has lots of resources that you may find useful, with details of the pros and cons of self-employment and some hints and tips about what to ask and check to ensure you get the right result from a job application, because sadly there are still practices that want you to be self-employed but then treat you as an employee, giving you the worst of both worlds.
Copy

Dr Konrad Rotthege
Co-founder at Conveyo
The mortgage industry sees a growing number of brokers opting for self-employment. This trend is driven by a desire for greater autonomy, flexibility, and potential earnings. However, self-employment comes with its own set of challenges. Administrative burdens and compliance requirements can be overwhelming, diverting valuable time and resources away from client-facing activities, impacting profitability.
This is where technology can be a game-changer. By automating many of these time-consuming processes, platforms like Conveyo act as an “outsourced backoffice”, allowing brokers to focus on building relationships and providing expert advice. As the industry evolves, we can expect to see a continued increase in self-employed mortgage brokers. To thrive, these brokers will need to embrace technology and outsource non-core functions.