Anyone who wants to work as a mortgage adviser in the UK needs to hold qualifications that are recognised by the FCA and, for most people, that means starting with the industry benchmark, the Certificate in Mortgage Advice and Practice (CeMAP).
CeMAP is provided by LIBF, part of Walbrook Institute London. Over 80% of UK mortgage advisers hold CeMAP.
Though it is possible to get a mortgage without taking financial advice, the Financial Conduct Authority points out that borrowers without advice often do not fully understand what they have signed, especially when it comes to disclosure documents, and any FCA protections they might have if things go wrong. The message from the regulator, then, is that expert mortgage advice is a must for most home buyers.
WHY CeMAP
The reason why advice is essential is that consumers who have taken regulated advice benefit very directly from the knowledge that a CeMAP holder must have to pass the qualification.
When a client is buying a home, a mortgage adviser guides them to the right mortgage product for them in a large and dynamic market.
The mortgage adviser also manages the overall process – and there is a lot of process in a house purchase.
An experienced team in a good firm will keep an eye on the housing chain (if the home is part of one), talk to the mortgage lender and facilitate the ongoing communication between the mortgage lender and the buyer, seller and estate agent, as well as the conveyancer.
These communications are time-consuming and can be tricky. For consumers, even if they had the ability to navigate this process, it would add a great deal of stress to what can often be one of life’s more taxing experiences.
THE MODULES
CeMAP has three modules with five compulsory units overall. Students have 12 months to complete each module (if they register for them separately) and 18 months if they register for the full course. It’s possible to get exemptions from some modules if a student can show prior learning.
THE THREE MODULES
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Financial Services, Regulation and Ethics, which has the units ‘Industry regulation and key parties’, and ‘Skills, principles and ethical behaviours’.
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Mortgages, with the units ‘Mortgage law, practice and application’, and ‘Mortgage products and post completion’.
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Assessment of Mortgage Advice Knowledge, which is also the title of the unit.
CeMAP has been the go-to mortgage advice qualification for over a quarter of a century because the course has been consistently improved and kept up-to-date in line with changes in financial regulation, technology and the market.
LIBF has made improvements in the last year to make CeMAP even more flexible and accessible.
Students taking CeMAP study on the same online learning environment used for the assessments. The interactive modules are designed to support a range of learning styles and preferences. This includes video and audio clips, case studies, regular assessments, and a free specimen exam paper for each unit.
FLEXIBLE AND WHEN YOU’RE READY
In particular, LIBF has taken control of invigilating its own exams and students can now take them remotely, online, at a time that suits them.
There is no longer a requirement to sit a whole module in one go. Students can sit the exams one unit at a time as long as they complete all the necessary components within 18 months.
“The invigilation, although remote, is also stringent.”
This is not about dumbing down. Because CeMAP has to meet the requirements set by the financial regulator, the difficulty levels remain exactly the same. The invigilation, although remote, is also stringent.
Before a student starts an exam, their webcam has to do a 360-degree sweep of the room in which the student and their webcam sit, including under the desk.
The rules are just the same as those for in-person exams at schools, colleges and universities. This means the webcam queries the presence of objects that could be study-related, such as table mats.
It doesn’t allow the presence of books, or objects like coffee cups. The only refreshment that can be brought in is a clear container of water. If a student leaves the space covered by the webcam during the assessment, the exam is invalidated.
EMPLOYMENT PROSPECTS
For the past few years, with interest rates relatively high, the number of mortgage advisers has been well-matched with the demand for mortgage advice.
However, with the fall in interest rates, moves by the regulator to ease house-buying for the self-employed and first-time buyers, as well as the rise in later-life lending, we’re seeing this change.
“Many new mortgage advisers are people between 30 and 40 who want a career change.”
Many new mortgage advisers are people between 30 and 40 who want a career change. Working in mortgage advice is flexible and allows people to become self-employed.
There is also plenty of scope for younger people to make their mark – particularly as they tend to be tech-savvy, can bring new ideas, and may find it easier to relate to younger first-time buyers.
Will the use of GenAI reduce the need for mortgage advisers? There is a lively debate around this but there’s a regulatory requirement under Consumer Duty that financial services firms should deliver good outcomes for all customers, including those in vulnerable circumstances.
This means that empathy, sensitive fact-finding and the ability to understand how others really feel will remain central to the work that advisers do.
By taking on some of the administrative workload, GenAI should enable them to focus on the core work of helping clients and listening to their needs and individual circumstances.
CeMAP AS A CAREER GATEWAY
CeMAP is a level 3 qualification and already enables advisers to provide support that goes further than the FCA rules require.
To build a successful career, though, advisers will need to add experience in a good firm and, over time, further qualifications.
For example, the FCA’s recent Mortgage Rule Review discussion paper looked at whether it should require enhanced advice in certain areas, such as later-life lending products.
To be able to respond appropriately to the needs of an ageing society, mortgage advisers may wish to study LIBF’s Certificate in Regulated Equity Release (CeRER), which is the first step into offering later life lending advice.
They can then also study the LIBF’s Certificate in Long Term Care and Later Life Planning (CertLTCP) to add further depth to their knowledge of this area of advice.
