Top Mortgage Franchises in the UK
Sophie Cole, writer
Published at 09/10/2020, Updated on 04/05/2022 , Reading time: 6 min
Always wanted to run a mortgage franchise or find out more about how to become a mortgage broker? Here’s why starting an online mortgage business could be the best decision you ever make, as well as some of the most exciting opportunities out there right now.
A mortgage is one of the biggest financial commitments most of us will make in our lives. A 2019 Santander survey found that owning a home was considered the ‘top life goal’ for adults under 40, with more than 56% craving the security of owning vs renting. However, even after you’ve spent years saving for a deposit, you’ll need to jump one more hurdle: securing the right mortgage.
According to finder.co.uk the average UK homeowner has mortgage debt amounting to £137,934, while mortgagesolutions.co.uk found Londoners owe a whopping £202,000 on average. As a result, most of us will need a helping hand to secure the right finance and navigate the complex route to owning a home. Fancy making a living with a mortgage franchise? Here’s why it’s a great idea, as well as two of the best opportunities out there at the moment.
Reasons to start a mortgage franchise
1. It’s financially rewarding. The average salaried mortgage broker earns around £36,540, according to Indeed, likely with commission on top. However, if you become the owner of your very own mortgage franchise, you’ll have the potential to earn far more. According to Your Mortgage Plus, its average franchisee earns around £2,500 in commission per case, meaning your income is only limited by the number of hours you’re willing to put in.
2. You can help people realise their dreams. Owning a home is a dream for many of us, but it’s not the easiest one to realise. According to CNBC, 63% of homeowners under 30 underestimated how much their property purchase would cost. The article also revealed many didn’t seek the help of a mortgage adviser or broker before taking the plunge.
If you run a mortgage franchise, you could enjoy the satisfaction of helping people own their very first home or develop a thriving property empire. Even if the financial potential of a mortgage franchise hasn’t convinced you, knowing you’ll be able to put a smile on your customers’ faces will.
3. Your business won’t be dependent on trends. While some business models can be heavily impacted by changes in trends and customer desires, a mortgage franchise will be more stable. You’ll be offering an essential service that will always be required, whether that’s by homeowners during positive economic times or by buy-to-let landlords when the market is less buoyant.
Even if recessions do hit, your customer base is unlikely to just disappear. A home is a basic need for everyone, meaning landlords will continue purchasing to house tenants, particularly during times when house prices are more affordable. Plus, homeowners will need to remortgage when their deals come to an end. Compared to a niche food franchise or gym, sport and beauty franchise, you’re not likely to lose your customers to a cooler neighbouring business that’s hopped on a new trend.
4. You may not need any qualifications. For many jobs in the world of mortgages, you will need qualifications to be accepted into a role. But if you don’t have that vital CeMap qualification, or other relevant awards, a franchise could still be a way to make your dreams come true.
You could take on a managerial position within your business and hire qualified, experienced staff to advise your customers while you focus on growing the business and chasing new leads. Some franchises will also help you work towards obtaining relevant qualifications, so you could soon be fully trained and ready to work directly with clients.
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Mortgage franchises in the UK
Want to explore your options in the world of mortgage franchises? Here are two of our top picks.
1. Your Mortgage Plus
Mortgage broker franchise Your Mortgage Plus gives you the chance to become a fully-qualified residential mortgage and protection broker. You’ll work with homeowners to find the best deal for their property and earn generous commission (on average £2,500 per case), on top of standard fees.
As an offshoot of parent group The White Rose Finance Group, which has achieved FCA principal status and is one of the largest commercial finance networks in the UK, you’ll have 16 years of knowledge and support behind you if you choose to join Your Mortgage Plus.
Becoming a Your Mortgage Plus franchisee: You don’t need any previous financial services experience or qualifications, such as CeMap, as you’ll undergo full training as part of your franchise package.
How much you need to invest: From as little as £9,995 plus VAT, you could become part of the Your Mortgage Plus network. There are a number of different franchise packages to choose from, depending on your ambitions, current budget and level of assistance required.
What you get for your investment: You’ll initially attend a three day training course before working towards a full CeMap and CAS qualification. Whenever you need it, you’ll be able to access ongoing development, support and training, and you’ll have a dedicated mentor and back office team to help you find and deal with clients. You could also enjoy additional income streams by diversifying into other products, including life insurance and equity release.
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2. Brokerplan
Brokerplan operates a team of finance brokers to provide online financial services such as commercial and business loans and mortgages, development funding, equity release and personal loans. As the UK’s top commercial finance network, Brokerplan works with payments of several thousand pounds up to £10 million.
Becoming a Brokerplan franchisee: This finance franchise is ideal for entrepreneurs who want to keep costs down or have existing commitments, as it can be run from home. You don’t need any previous experience in the world of finance; Brokerplan is looking for franchisees who are driven, enthusiastic and able to work hard and learn quickly.
How much you need to invest: You should be prepared to invest at least £4,995, but larger payment options may be required, rising to £29,995. As with most franchises, you’ll also pay monthly costs. These cover Financial Conduct Authority compliance, as well as website and email fees and support in marketing and business development. This is a relatively affordable franchise opportunity, especially considering that you could stand to make over £150,000 in revenue after the first two years.
What you get for your investment: All franchisees get an extensive business launch package. This includes a two-day business training course, as well as a professional email address, business cards and important documentation.
Join a mortgage franchise today
As you can see, there are plenty of reasons why joining a mortgage franchise is a fantastic idea. From the financial potential to the constant demand, it’s a solid sector that could hold the keys to complete career satisfaction. If you’re not sold on either of the franchise concepts highlighted above, we have hundreds of other options to choose from. Browse our UK franchise directory to find the ideal franchise for you and get started on your franchising journey now.
Sophie Cole, writer