What is CeMAP?
CeMAP stands for Certificate in Mortgage Advice and Practice. CeMAP is the qualification a person must have to be a recognised as a practicing mortgage advisor by the Financial Services Authority.
The Financial Services Authority or FSA replaced the Mortgage Code Compliance Board (MCCB) on the 31st of October 2004 and from this date the need for mortgage advisors to hold a CeMAP qualification was very stringently enforced.
The introduction of CeMAP qualifications and the need for mortgage advisors to hold CeMAP qualifications came as an answer to the financial scandals that occurred in the UK during the 1980’s and 90’s. In 1998 there was a 35% increase in customer complaints over the number received in the previous year, with mortgage related complaints making up a high percentage of the total complaints. The first solution to the problem was to make mortgage contracts clearer and more transparent under the introduction of The Mortgage Code. The introduction of the FSA in 2004 and their policing of the need for CeMAP qualifications further strengthened the UK mortgage market which had previously been seen as under regulated. This means that the UK mortgage market is now up to par with other industries in implementing a higher degree of overall consumer protection.
To obtain a CeMAP qualification a person must study a course that consists of three separate modules the first covers UK Financial Regulations, the second Mortgages and finally the third module covers the Assessment of Mortgage Advice Knowledge. At the conclusion of each of these three modules a student then sits an exam which they must pass with a score of at least 70%.
The demand CeMAP qualified people is growing throughout the UK, the property market is booming so property values are increasing, thus consumers shopping around more to find an affordable and suitable mortgage product. Gone are the days when the consumer would approach their favourite bank or building society and sign up to the first mortgage product they were offered. Over the last few years we have seen the growth of alternative lenders marketing their products through mediums such as websites and other forms of e commerce as well as direct sales. This plethora of mortgage products and mortgage lenders has meant that the average consumer is searching for qualified professional advice to help guide them through this potential mine field.
Buying a home is the biggest purchase most consumers will ever make, and a mortgage is the longest term and one of the most financially complicated contracts a consumer will ever enter into, so knowledgeable independent advice is generally seen now as a must not a choice. A CeMAP qualification is one of the major factors consumers look for when deciding which mortgage advisor to hire.
