What Do New Mortgage Brokers Need to Know About UK Industry Regulations?

If you’re starting your career as a mortgage broker in the UK, one of the first things you’ll realise—often the hard way—is that compliance isn’t optional. Understanding and applying industry regulations isn’t just a box-ticking exercise. It’s what protects you, your clients, and your business.

In this guide, we’ll break down the FCA rules for mortgage advisers, explain what the Consumer Duty really means in practice, and give you a step-by-step framework to embed compliance into your sales process from day one.

Why Should New Mortgage Brokers Prioritise FCA Compliance?

Whether you're directly authorised or working under a network, every mortgage adviser in the UK is regulated by the Financial Conduct Authority (FCA). Their mission is to ensure advice is suitable, transparent, and in the customer’s best interest.

Key responsibilities include:

• Providing tailored mortgage advice

• Clearly disclosing your broker fees and commission

• Maintaining accurate, accessible records

• Communicating in a clear, fair, and not misleading way

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What Is the Consumer Duty and How Does It Affect New Mortgage Advisers?

The FCA Consumer Duty, launched in 2023, sets a new higher standard: you must prove that you're delivering “good outcomes” for clients. Not just that the advice was ‘suitable’, but that it actively helped your client make a better financial decision.

For new brokers, this means:

• Focusing on outcomes, not just recommendations

• Documenting decisions clearly

• Making sure your processes and communication are fair, transparent and inclusive

Pro Tip: This isn't just about being safe—it’s about building trust, which translates directly into better conversion, retention, and referrals.

How Can You Build Compliance Into Your Sales Process?

One of the biggest mistakes new mortgage brokers make is treating compliance as something separate from the sales process.

The best brokers I coach through the Mortgage Business Mastery programme embed compliance into every stage of the journey—especially their discovery and submission calls.

Here’s how to integrate compliance naturally:

• Discovery Call: Start with IDDs, GDPR consent, and initial soft fact-finding

• Fact Find: Document goals, future plans, affordability and risk

• Advice: Explain all options (mortgages, protection, wills, etc.)

• Suitability Letter: Justify your recommendation based on the client’s own words

Want to fast-track this? ashborland.com offers 1:1 coaching designed specifically for UK mortgage brokers looking to scale, streamline and stay compliant.

What Records Should You Keep to Stay Compliant as a New Broker?

If you’re giving advice, you’re expected to evidence that advice—clearly and consistently.

Essential documents to keep include:

• IDD acknowledgment

• Full fact find (including soft facts and goals)

• Product research and rationale

• Fee disclosures and signed agreements

• Protection discussions—even if declined

• Any risk warnings or disclaimers

Top Tip: Your record-keeping system doesn’t need to be fancy—just consistent. Whether it's a CRM like Go High Level or a structured OneNote system, make sure it’s backed up and regularly reviewed.

What Are the Risks of Poor Record-Keeping for New Advisers?

Think you’ll “remember what was said”? You won’t. And if a client complaint reaches the Financial Ombudsman Service (FOS), the burden of proof is on you.

Here’s what poor documentation leads to:

• Fines and disciplinary action

• Client refunds or clawbacks

• Lost authorisation or PI cover issues

• Reputational damage

Compliance isn't just protection—it’s peace of mind.

Can Being Compliant Actually Help You Win More Clients?

Yes—100% yes.

Compliance, when delivered with clarity and structure, creates trust. And trust is what converts enquiries into paying clients. When a client feels like you have your process locked in, they relax. They’re more likely to take your advice, refer their friends, and value your fee.

Want to build a process that’s compliant and high-converting? You’ll love ashborland.com/30day – 30 practical tips that bring structure to your client journey.

What Common Compliance Mistakes Do New Mortgage Brokers Make?

Here are the repeat offenders I see in almost every first-year broker I coach:

• Skipping or rushing IDD/GDPR on first contact

• Not discussing protection “because it’s awkward”

• Using generic suitability reports without context

• Forgetting to document declined recommendations

• Discounting fees without written justification

• Confusing marketing with advice (compliance minefield!)

If this sounds like you, you’re not alone—but it’s time to fix it. Systems solve this. Confidence builds from structure.

What Tools Can Help You Stay on Top of Your Compliance?

Here’s a shortlist of tools that make compliance smoother and more automated:

• Calendly – Add pre-call documents like IDDs and fact-find forms

• Go High Level – Full CRM with automation, nurture, and appointment setting

• OneNote / Notion – Create templated case folders with checklists

• Loom / Video Tools – Record client explanations and updates for clarity

• Microsoft To-Do / Trello – Track where each client is in the process

Want a walkthrough of how I help new brokers build this toolkit into their daily business? Head to ashborland.com and explore the 1:1 coaching options.

How Can New Mortgage Brokers Stay Confident and Compliant Long-Term?

Confidence doesn’t come from winging it—it comes from structure.

When your sales process is your compliance process, you save time, stress less, and build better relationships. That’s exactly what I help brokers do inside Mortgage Business Mastery—a step-by-step coaching system to scale your business and stay compliant every step of the way.