Entrepreneurship isn't for everyone it seems
With around 36,000 mortgage brokers thought to be operating across more than 4,200 firms in the UK – based on Financial Conduct Authority figures - it begs the question of why more advisers aren’t operating as businesses in their own right.
According to FCA figures, in 2022 there were 1,964 mortgage broker firms with 16,452 staff advising on mortgages, and 2,542 financial adviser firms which had 13,229 intermediaries. Some 81 banks and building societies had 4,430 staff advising on mortgages, 270 insurance intermediary firms had 1,803 advisers, while 113 other firms had 527 employed brokers.
Ying Tan (pictured left), CEO of digital brokerage Habito, suggests some mortgage brokers’ reluctance to go self-employed is because of the risk involved. “The risk of being an entrepreneur is glamorised to many by The Apprentice, and Dragons Den,” Tan told Mortgage Introducer. “You know, it's great because you're your own boss, you don't answer to anybody, but that’s all the stuff you see on social media. You don't always read about the late nights, the worry 24/7, the fact that you've never paid yourself more money - that's the reality.”
He continued: "Of course, I make my money when I exit the business - that's an entrepreneur. It's like building wealth in a property. You've got all of this equity, but how do you realise it? That only happens at an exit and exits don't come easily. People don't always appreciate the work that you do for others, so you've got to have resilience and not everybody has that. So, it's not for everybody, but at the same time for those who do want to embark on that journey, from a personal perspective, there's no greater achievement and no greater journey than building and scaling a business.”
What, then, would Tan suggest to those brokers considering setting up their own broker firm? “You need to take the right advice, first of all,” Tan said. “Align yourself with people who've done it, to understand it. Don't just think, ‘OK, it means I'll be my own boss.’ You're taking a risk, you're probably not going to pay yourself as much in the first instance - everyone else gets paid first. But have a clear goal, and know why you are becoming self-employed. Are you doing it for a lifestyle business? Are you building and scaling a business to exit, or are you just doing it to be your own boss, because you're fed up of listening to other people or making other people money?
Have a clear reason why you're doing it, and then build your plan around that goal.”
Tan added: “There are too many people, in my opinion, who kind of stumble into it, because they want to be their own boss, and they don't give the business its true focus. Don’t do too many things at once - focus on one thing, get it done, and on to the next thing.”
Sam Mason (pictured second from left), founder and managing director of The Mortgage & Protection Hub, believes he understands why more brokers don’t go self-employed. “Two main reasons - no or low income for the first six months and a fear of not having enough leads,” Mason explained. “Entrepreneurship isn’t for everyone - the 2am shifts, the severe anxiety, the burning through cash to try new ideas, the pressure to wear ten hats at once, and that’s fine to admit. Not everyone wants to deal with the downsides, understandably. Yet so many want the rewards - more autonomy, higher earning potential, true flexibility, location freedom, and not having to request annual leave.”
With a philosophy of ‘work to live, don’t live to work’, Mason’s business aims to offer a ‘middle ground’ to the brokers it works with, providing leads, marketing, admin support, and strong financial backing to build their pipeline. ”You can focus on serving clients, growing your income & enjoying your life,” Mason explained.
Read more: Why do property deals take so long to close?
The fear of the unknown
Ben Allkins (pictured second from right), head of mortgages and protection at brokerage Just Mortgages, meanwhile considers that the main reason more brokers don’t go self-employed is the fear of the unknown. “There’s an understandable hesitation in giving up a regular income and the security of employment,” Allkins said. “Many brokers naturally worry about how they’ll generate business, secure cash-flow, manage compliance, or simply cope without the structure of a large organisation behind them. We’ve supported hundreds of brokers in making that transition.”
Just Mortgages operates a new starter scheme that makes available an interest free loan and client leads in the early days of self-employment, Allkins explained. “What we see time and time again is that the right support and infrastructure can make self-employment incredibly rewarding, both financially and in terms of work-life balance,” he said.
Allkins advises anyone considering such a move not to do it alone. “Seek out a model that gives you the freedom of self-employment but still offers the training, mentoring, compliance and financial support that helps you thrive,” he said. “In Q1 2025 alone, 47 brokers applied to join the Just Mortgages self-employed division. In total, we currently have close to 500 self-employed brokers making up the majority share of over 650 total Just Mortgage brokers. That number continues to grow and grow as more brokers recognise the opportunities available to them.”
Rebecca Ward-Thomas (pictured right), founder and principle mortgage broker at Realm Property Finance, believes some brokers are discouraged from going it alone because they worry about living with uncertainty. “It’s the lack of security I’d imagine,” said Ward-Thomas. “Not knowing where your next client is coming from. If you have dependants then there’s added risk. Additionally, world affairs massively impact the financial markets, which has a knock on effect with mortgage activity. Busy periods are no longer seasonal, they’re linked to politics and what’s going on in the world and it’s hard to predict when these fluctuations will occur in current times.”
