View more on these topics

Wrangle over training fees for mortgage candidates

Leading mortgage brokers are questioning whether candidates should be paying hefty fees to be trained by mortgage networks and brokerages.

Mortgage Force, The Mortgage Times Group and Home & Away are three firms which charge fees for training entrants to the loan industry.

The Mortgage Times Group charges £1,250 and Mort-gage Force charges between £1,987 and £3,287, depending on experience. But some groups are thought to charge as much as £6,815.

Home of Choice CEO Richard Coulson says it is wrong to charge graduates fees to train with a company.

He says: “If you take in a graduate, the least you can do is invest some money in them. It is not right. It sounds like a bit of opportunism.

“I would say to graduates to steer clear of this. They have probably just come out of college with a huge debt so it is wrong.”

Alexander Hall chief operating officer Andy Pratt says: “I would not knock anybody that decides to charge people. It is a commercial decision. But my personal view is that if you are open and transparent, you get far more back from the trainee.

“They should not really need to charge because there is something fundamentally wrong with the train-ing scheme if they cannot get value out of their train-ees while they are working for them.

“It makes it a bit divisive between the company and the trainee.”

London & Country head of communications David Hollingworth says: “I would suggest that becoming an employee is perhaps a more solid way of going about it rather than paying to go on a training course with no guarantee of a job at the end of it.”

One leading broker says: “I have heard of one case where they tied in somebody for two years and if they left before that period, they would have to pay £5,000. I think that is fair enough because they are providing full technical and mortgage training as well as access to their systems.

“It would cost a few thousand to train up someone and they would be worth an extra £5,000 in the market once they have been trained so I think that is justified. While that seems step, it is not dissimilar to paying for a similar course privately.”

The Mortgage Times Group head of marketing Payam Azadi says: “Our offering is priced down from most of the other broker training courses available on the market currently and we make no profit from the fee that covers the costs of training, all course materials and expert tuition.”

Mortgage Force mana-ging director Rob Clifford says: “We do not profiteer from the training programme. It is offered at cost price. We do not want people who are not prepared to make a financial commitment.”


Brown faces Brighton Northern Rock attack

The LibDems wasted no time livening up a cold and dull Brighton morning with a stinging personal attack on Gordon Brown over the events at Northern Rock, suggesting it is a sign of worse to come.

Schroders funds get top Lipper rankings

Schroders’ multi-manager strategic balanced and multi-manager high alpha portfolio funds have marked their three-year anniversaries with top 10 Lipper rankings in their respective sectors.

Aviva Europe chief leaves for Pru

Aviva chief executive officer, Europe, Tidjane Thiam is joining Prudential as group finance director in April 2008.Thiam replaces Philip Broadley and will join the Prudential Board as an executive director.Thiam has previously held the positions of group strategy and development director and managing director, Aviva International. Prior to Aviva, Thiam was a partner with McKinsey […]

People on the move – Mortgages

Richard Farr has been appointed as director at the Association of Mortgage Intermediaries. Farr was head of marketing comm-unications at Portman Building Society. He will report directly to AMI director general Chris Cummings.Edeus has appointed former UCB head of sales and business development Gary Webster as director of distribution. At UCB, Webster was responsible for […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm