Mortgage brokerage firms in the UK often look to expand by bringing on self-employed brokers. This can be an effective growth strategy, but to succeed, you need to understand what brokers are looking for and how to make your firm an attractive proposition.

Mortgage brokers typically have three career paths to choose from:

1. Employed Roles
   These roles are ideal for those who want the security of a regular salary. While employed positions offer less earning potential compared to self-employment, they provide financial stability and reduced risk. Brokers who prefer a structured environment with fewer business responsibilities often gravitate towards this option.
2. Setting Up Their Own Business
   Brokers who desire more control and are willing to take on greater risk may opt to start their own mortgage business. They can either join a network or become directly authorised by the Financial Conduct Authority (FCA). While this path offers the potential for the highest earnings and complete control over operations, it requires significant investment, time, and management of compliance, lead generation, and administration.
3. Self-Employed Within an Existing Business
   The third option is for brokers to work on a self-employed basis within a business they don’t own. In this arrangement, the broker typically pays a percentage of their earnings to the business in exchange for valuable resources, most importantly leads, and in some cases, administrative support.

What Brokers Are Looking For

At Finlink, we regularly speak with mortgage brokers who are evaluating their next career steps. From our conversations this year, we’ve gathered valuable insights into what brokers are looking for in a self-employed opportunity:

• 34% of brokers are open to self-employment.
• 14% of brokers are already self-employed and still open to exploring new opportunities.
• However, only 5% of self-employed brokers have a client bank (of any size).

Of this 5%:

• 3% are actively looking to move because they need extra or better-quality leads.
• 2%, while not in immediate need of leads, would still prefer to have the option available.

What Value Are You Offering?

For self-employed brokers to consider working with your firm, they need to perceive significant value in the arrangement. While some may value administrative support, this is only attractive to brokers with a high enough workload to benefit from time savings. The most critical value-add, however, is leads.

Here are the key factors that will make your brokerage stand out:

1. Leads
   Access to high-quality leads is a top priority for most brokers. For many, the primary reason to join a self-employed arrangement is the opportunity to consistently secure new business without having to invest heavily in their own marketing.
2. Administration Support
   For brokers who are already busy, admin support can be a game-changer. The more you can help with the time-consuming administrative tasks, the more time they’ll have to focus on income-generating activities.
3. Financial Support
   Providing financial support, such as retainers or loans, can be highly attractive—especially if your firm does not provide leads. This helps brokers maintain stability while they build up their client base.
4. Competitive Commission Structure
   Brokers are willing to give up a portion of their earnings in exchange for the support and leads your business provides, but the commission split must be competitive and reflect the value you’re offering.
5. Flexibility
   Self-employed brokers often look for flexibility in working hours and location. If your firm offers brokers the freedom to manage their own schedules and work remotely, it will increase your appeal.
6. Brand Strength
   A strong, trusted brand is another factor that can attract brokers. Brokers want to align themselves with firms that have a solid reputation and market presence, which can help them secure more clients and grow their income.

Conclusion

If you’re aiming to grow your brokerage by taking on self-employed mortgage brokers, it’s crucial to focus on providing value in the form of leads, financial support, flexibility, and a strong support system. By delivering these key elements, your business will become a desirable destination for brokers looking to elevate their careers.

At Finlink, we continually analyse broker preferences and market trends, helping firms like yours attract and retain top mortgage broker talent.

To find out more about us, click here.