Should I Become an Appointed Representative or Go Directly Authorised as a Mortgage Broker in the UK?

Ash Borland blog
August 03, 2025•5 min read

If you're launching your career as a mortgage broker or looking to scale your business, one of the most important early decisions is this:

Should I become an Appointed Representative (AR) under a network, or go Directly Authorised (DA) with the FCA?

This choice affects your daily operations, income structure, lead generation options and long-term growth. Whether you're newly qualified or a seasoned adviser planning your next move, this guide breaks down everything you need to know to choose the best option for your mortgage business.

What Does Appointed Representative Mean for Mortgage Brokers?

An Appointed Representative is a self-employed mortgage adviser who operates under the permissions of a larger FCA-authorised mortgage network.

You effectively use their regulatory status to trade, relying on their systems and compliance.

Key benefits of AR status:

  • Fast setup and onboarding

  • Network-provided compliance and PI insurance

  • CRM software and lender panels often included

  • Mentorship and training available

  • Some networks offer lead generation or admin support

If you’ve recently passed your CeMAP exams, AR is often the recommended entry point. If you’re still working through your qualifications, Future in Finance offers a smart way to study. Use my code ASH50 for £50 off any CeMAP course at Future in Finance.

What Does Directly Authorised Mean for Mortgage Brokers?

A Directly Authorised broker is regulated by the FCA in their own name. You take full control over your brand, systems, compliance and marketing.

Many brokers choose this route after gaining experience as an AR and building a solid client base.

Key benefits of DA status:

  • Complete control over your marketing and lead generation

  • No revenue split with a network

  • Greater freedom to scale your business or build a team

  • You design your own customer journey and brand identity

If you're considering this route, my video on the Mortgage Business Growth Plan explores how DA brokers can create scalable businesses with structure and intention.

What Are the Pros and Cons of Being an Appointed Representative?

Being an AR offers simplicity and support but limits autonomy.

Pros:

  • Quick to start trading (usually within weeks)

  • Compliance, training, and file checks are all managed

  • Ideal for new advisers or lifestyle brokers

  • Some networks provide leads and back-office support

Cons:

  • You give up a percentage of your earnings

  • Limited freedom over marketing, paid ads and branding

  • Restricted use of technology or CRMs outside network

  • Network approval required for most content strategies

To better understand how to grow as an AR, watch my video on Mortgage Marketing That Actually Works, where I show how brokers can use organic marketing even within network constraints.

What Are the Pros and Cons of Being Directly Authorised?

The DA route gives full ownership but adds complexity.

Pros:

  • You keep 100% of your proc fees and broker fees

  • Run your own brand, processes and CRM

  • Total freedom to use video, ads, SEO and paid lead generation

  • You can scale a team and hire your way out of the day-to-day

Cons:

  • Longer setup time due to FCA approval (3 to 6 months)

  • You’re responsible for compliance, insurance, training and supervision

  • Upfront and ongoing costs are higher

  • Requires organisation, structure and commitment

My video Mortgage Sales Tips That Skyrocket Income unpacks how DA brokers can maximise income by owning the client journey from lead to retention.

Who Should Become an Appointed Representative?

AR status is ideal for:

  • Newly qualified mortgage advisers

  • Brokers moving from an employed role

  • Those who prefer support with compliance and systems

  • Brokers who want leads, admin help or structured mentorship

Many of the brokers I coach start out as ARs and use the 30-Day Mortgage Broker Boost to build momentum before making the leap to DA. It provides one action step each day to improve your lead generation, processes and confidence.

Who Should Go Directly Authorised as a Mortgage Broker?

You might be ready to go DA if:

  • You’re already writing 10 or more cases per month

  • You want full creative control over branding and marketing

  • You are confident managing your own compliance or can outsource it

  • You are building a team, launching a niche brand or scaling nationally

For more on how to win more clients with better positioning, check out my video on More Mortgage Referrals Than You Can Deal With.

What Are the Costs of AR vs DA for UK Mortgage Brokers?

Category Appointed Representative (AR) Directly Authorised (DA) FCA Application Fees None (included in network) £2,500+ initial fee Monthly Costs £300–£1,000 to the network £500–£1,500 for tools and PI Startup Time 2–4 weeks 3–6 months Commission Split 70–90% to broker 100% to broker Marketing Freedom Restricted Unrestricted Compliance Responsibility Handled by network Fully self-managed or outsourced

Should Brokers Start as AR and Go DA Later?

This is a common and often effective progression. Start as an AR to learn the ropes, refine your sales skills and understand your clients. Once you’re writing consistently and confident in your marketing, you can apply to go DA and build something that’s fully yours.

My YouTube channel is packed with videos that walk through this journey in detail. Subscribe here: Ash Borland YouTube Channel

How Do I Decide Which Route Is Right for Me?

Ask yourself:

  • Do I want structure and support, or freedom and ownership?

  • Am I confident generating my own leads or do I need help?

  • Can I manage compliance and admin, or do I need a team?

  • What’s my long-term goal: lifestyle income or scalable business?

Still stuck? Feel free to send me a message on Instagram if you want to talk it through. I reply to every message and am always happy to help.

Final Thoughts on AR vs DA for Mortgage Brokers

Both models can work. It depends entirely on your experience, mindset and business ambition.

If you want to get going quickly with support, AR is a smart route to build experience and confidence.

If you’re ready to build your own brand, scale your income and have full control, DA could be the right path.

If you’re looking to grow smarter and faster, explore my coaching options or start with the 30-Day Broker Boost. You’ll get focused steps to simplify and scale your mortgage business using proven strategies and content that works.

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