Why mortgage franchises hold the key to success...
There are many franchises and franchise sectors alike to consider when exploring with the possibility of starting your own business through franchising. One sector that seems to get overlooked is that of the Mortgage franchise sector, and we’re baffled as it provides a great opportunity to start your own business in a flourishing market.
As we all know, the housing market is extremely competitive, and it’s estimated that more than 11 million people within the UK have mortgages assigned to their names. The Mortgage industry is estimated to be worth over £1 trillion within the UK, which is considerably higher than any other major European country who prefer the option to rent or lease property instead. The UK is THE hotbed for anyone seeking to launch a mortgage business or franchise.
The average first time buyer is now below 35, and this figure is decreasing year on year, as it becomes far more accessible to own your own home through acquiring a mortgage. The purpose of a mortgage franchise adviser is to help advise and set up a strategy on how to complete the mortgage application process and advise on what offers are best suited to your client. As mentioned earlier, 11 million people within the UK have some level of mortgage to their name and this equates to just over 37% of UK households. 37% of UK households posses some level of mortgage debt, with the average coming in at close to £75,000. A big plus for prospective mortgage franchisees is the fact that this market is ripe, and many more houses are being built that comes with many more mortgage applications requiring assistance to complete. There’s a huge demand!
Mortgage franchisees aren’t just restricted on helping individuals realise their dream of owning their own property, you can also assist with business owners looking at the prospect of re-financing to release further capital.
Not only is the mortgage franchise sector ripe, but it’s incredibly fast moving. All major high street banks and specialist financing institutes are presenting a varied range of financial products, thus leaving some potential homeowners feeling rather overwhelmed with such choice and very little knowledge to accompany with. This is where you, as the Mortgage franchisee advisor step in to help guide and ease that process.
This scenario presents a fantastic opportunity for Mortgage advisors and mortgage brokers to prosper from, as you can profit by assisting individuals and families through the complicated and tiring process of completing on their dream home.
Before debating whether you want to go it alone or go down the more trusted franchise route, it’s key to understand the difficulty of trying to set up a mortgage business by yourself. Firstly, there are licenses and accreditations that are required prior to advising any individual. On top of this you require capital, and costs for marketing, admin and most importantly reputation! If you’re not trustworthy and have a recognised brand, then why would any one choose you to assist them with such big commitment in assisting with the purchase of a house.
As previously mentioned in this piece, setting up a mortgage franchise from scratch could prove to be a very difficult task. The route of purchasing a mortgage franchise will provide you with the opportunity to run your business on the current reputation and branding of an existing business. Although franchises vary in their initial franchise fees, they could still prove to be considerably cheaper than going it alone.
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