Is the business missing out on potential talent?
It’s frequently reported that the mortgage industry is struggling to recruit new talent - and, given that the future of any sector relies on the quality of those coming into it, where is the business going wrong in attracting fresh blood - and where is its recruitment lagging? What, in the view of industry professionals, can be done to turn things around, and how can the industry make itself more attractive to potential personnel?
The situation is summed by Amy Davenport (pictured top left), who is responsible for business support and operations at The Mortgage Mum Specialist Finance. “I keep seeing on social media and within articles that we’re struggling to recruit people into financial services, but when I actually look at the roles being advertised, most of them require years of experience in the industry,” she noted.
While training takes time and is an investment, and some roles do require experience, Davenport acknowledges, she questions how potential staff are expected to make their entry into the industry. “It blows my mind - how exactly are people supposed to join?” she commented. “Where are people supposed to start? We are overlooking the people who are actively trying to get a foot in the door, but we were all new once. Someone gave us a chance, and I really believe we are missing out on so many amazing people in financial services because of this.”
Broker Thomas Boughton (pictured top centre), founder of Artillium Finance Partners, believes one of the biggest barriers to attracting talent to this industry is simply its visibility - or rather, the lack of it. “The vast majority of people I speak to joke that they fell into the industry,” Boughton said. “Nobody I know actively pursued it as a career path, myself included.”
Another significant issue is the limited availability of structured, academy-style entry points, Boughton suggests. “Large firms tend to require prior experience, while many SMEs offer minimal support or commission-only roles, which aren’t feasible for many young people without financial backing,” he said, “and that’s a shame because the reality is, this industry can be extremely rewarding. It’s possible to earn a substantial income within the first couple of years, even without a decade of experience. But this potential is often poorly communicated. If firms were more transparent about the time and effort it takes to reach that earning potential and paired that honesty with solid training and early career support, they’d likely attract more committed, longer-term talent who don't feel like they’ve been sold a dream.”
A key issue stems from mortgage brokering not being considered a professional role, suggests Luther Yeates (pictured top right), head of mortgages at Orton Financial. Some will want to be part of a recognised industry, with the respect that it commands. “I hadn’t even considered the mortgage market when I was looking at finance roles,” Yeates shared. “So, I would say there is little outreach or coverage from the industry on what the role actually involves, useful skills etc. As to being a good broker you need to be analytical, and at least have moderate people skills. There are no large, reputable firms like other industries. You have the ‘big four’ accountancy firms, the large law firms and the investment banks. There is no real equivalent, and lots of smaller firms really limit the ability to progress, from the outside looking in.”
The industry arguably suffers from competition for talent, Yeates believes. “Our closest competition will be financial advisers, as I also interviewed for IFA roles,” he said. “They are also experiencing a shortage of new talent and it suggests there is more of a shortage of new entrants into the advisory space in the UK. The role needs to be advisory first, sales second, but you need the qualities that both types of role command in order to do well. Once you have this universal, transferable skill, you will be tempted to drift towards other, higher-paying professions.”
The industry might also be further depressed due to the discouraging experience of those in the property market. “We are still aware of agents pressure-selling their mortgage broker on to prospective buyers,” he said. “I wouldn’t relish the position of the mortgage adviser who is having to have that appointment, so it certainly wouldn’t make me think it is a role I would enjoy myself.”
Meanwhile, Gerard Boon (pictured bottom right), managing director of Boon Brokers, believes that new talent is struggling to emerge in the mortgage industry, due to a poor economic environment. “With many companies struggling and laying off staff, there is a far larger pool of candidates for firms to choose from,” Boon commented. “As a result, brokerages can be more picky with who they hire and insist on a certain number of years’ experience as a result.”
In his own business, Boon has seen far more CVs come in this year than ever before. “This may be a credit to the firm's recent growth, but it also indicates that there are many advisers on the market looking for work,” he reasoned. “In addition to this, the compliance pressures on mortgage brokerages have made firms wary when taking on new staff. A poor decision from an inexperienced broker may be incredibly punishing in the current environment, considering the current makeup of the Financial Ombudsman Service following consumer complaints. Therefore, in a market where mistakes are brutally punished, and there is a large pool of talent to choose from, I am not surprised that many firms insist on at least a couple of years’ experience from a broker before hiring them.”
Boon suggests that to improve the chances of new talent emerging in the mortgage industry, it requires a better economic environment for the country. “This will encourage competition, and firms will hire more staff as a result,” he added.
Read more: Taking time off in the mortgage industry
In what ways is the mortgage industry’s recruitment failing?
The mortgage industry is failing in two ways when it comes to attracting new talent, in Ben Groves’ view. The managing director and founder of brokerage Yomo Finance, firstly believes the barrier to entry is too high. “Too many roles require years of experience, which is unrealistic for those trying to break into the sector,” stated Groves (pictured bottom centre). “It’s a catch-22 - no experience, no entry; no entry, no experience. There’s a wealth of untapped potential out there, but the industry isn’t structured to nurture and train newcomers from the ground up. We’ve considered setting up an academy for entry level starters to foster that potential.”
Secondly, there’s a lack of clear, structured pathways for development and accreditation, according to Groves. “While regulatory requirements like MCOB / Consumer Dity are crucial for client protection, the process for newcomers to gain qualifications like CeMAP and understand what ‘good’ looks like in practice isn’t transparent or well-supported by most firms,” he said. “The sector also suffers from inconsistent expectations and limited investment in training, especially where self-employment is the norm for brokers. Most self-employed brokers that we speak to, especially when speaking to or coming from a DA firm, have little to no training, which is astounding in our heavily regulated environment.”
To reverse this trend, the industry needs to rethink its recruitment and onboarding practices, create genuine entry-level roles, invest in robust training and mentorship, and make career progression more openly available, Groves added.
Recruitment is tough across many industries right now, emphasises broker Sheena Campbell (pictured bottom right). “Within the mortgage industry, I do think we're particularly guilty of overlooking strong talent and being too rigid with our entry requirements,” Campbell said. “There’s often an expectation that candidates will arrive with experience, ready to hit the ground running. Of course, that would be ideal but how often do you find someone who not only ticks every technical box but also aligns with your values and culture? Those people are rare.
“Personally, I believe if someone has the right attitude and is eager to learn, they can pick up anything you’re willing to teach them. We need to shift our focus from hiring purely on experience to hiring based on values, potential and willingness to grow. That might take longer in terms of onboarding, but the long-term rewards are worth it and waiting for a 'perfect' candidate can take just as long, if not longer. There's also the expense of attracting those candidates with more experience.”
When Campbell first explored becoming a broker, she wrongly assumed she needed a finance degree. “It was only when I started in the mortgage enquiry department at Santander that I realised the door was open,” she shared. “I funded my own exams, got promoted, went self-employed and now run my own Brokerage. If I’d believed my early assumptions, I’d never be where I am today. I think as more younger brokers start finding their feet and running their own brokerages, we’ll see a real shift in how we hire. Hopefully with more openness, more flexibility for our employees and more focus on potential over credentials.”
