Prime Remortgages programme CPL

[Sue CPAN]

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Great News For All Affiliates!

CPAN are delighted to announce a superb change to criteria on the easyremortgage programme.

Easyremortgages will now also accept prime applications on a CPL basis.

Commission Payments as follows:

Sub prime remortgage - £75cpl
Prime remortgage - £45cpl

Both with a further bonus of £70cpl on issued documents on Prime and £125 on issued documents for Sub prime.

For details of criteria and to join this programme click here

[russell cpanuk]

Just to outline the criteria on this campaign and to notify you of the new agreed price.

Prime or Near Prime, can have 1 missed payment in the last 12 months, but must have no missed payments in the last 3 months + max 90% LTV

Medium: 0/1 payment missed in the last three months + Up to 4 missed in the last 12 + max 80% LTV

Heavy/Unlimited, None in the last three months + Up to 9 in the last 12 + max 70% LTV

As long as the application fits the above criteria then a payout of £75 will be credited to your account, with a further £125 credited once the applicant has been issued the first docs from the broker.

This is a long standing campaign which has been operating since summer 2005.

Now this is the highest paying re-mortgage campaign on the market today, a lot of affiliates are having success at directing their visitors into a re-mortgage, rather than a secured loan, due to the market conditions. If you would like more information on this campaign or how to direct your visitor into a re-mortgage, then contact me direct.

[Michael_Anthony]

I must say that I am astounded at these recent good credit remortgage CPA's.

Perhaps you could explain how it works financially? From what I understand a prime remortgage when completed typically pays out a fee of 0.2 - 0.3% of the loan value.

So, being generous, let's assume a conversion rate of 10%.

100 leads at £45, plus CPAN margin say £55 per lead = £5500
10 Leads Complete, so a further £70 docs issued fee x 10 = £700.
10% complete, average loan 150k, = 10 x £150k x 0.3% fees = total fees £4500.

So the merchant pays out £6200 and gets back £4500.

Of course, the merchant could charge additional fees, but in the prime market it is near impossible to get away with, as the consumers are so price sensitive.

The near prime and sub prime I can understand, as the completion fees for these products are so much higher, but the prime CPA just doesn't add up??

[russell cpanuk]

Michael move the decimal places in your working out 0.2% to 2%. Thought you would have known this being a finance expert!

To expand a tad, this campaign this targeted at the near prime, looking back at all the leads generated on this campaign since 2005, only a few handfuls, fell into the 100% prime bracket, most 100% prime applicants will visit their own Bank/BS first. So you are correct Michael, 100% prime deals are not that great at payouts.

The merchant is working of volume here, OK he will get a few 100% prime, but mostly the applications will fall short of 100%

[Michael_Anthony]

So why pay £45 for prime?? Regardless of LTV, the completion fees are too low for it to work.

[russell cpanuk]

A study has shown that since July 2007 463,000 people failed to meet at least one mortgage payment, (these people were normally classed as prime) They are now near prime. 2008 is the year that record numbers of short term fixed rate home loans come to an end, it is estimated that 1.4m homeowners will see their payments rise by an average of £210 per month.

Last year, more than 30,000 homes were repossessed and the Council for Mortgage Lenders expects that number to rise to 45,000 this year. The Financial Services Authority (FSA) has identified 3 types of borrower as being the most at risk of defaulting on their loans. These groups are people who have borrowed a high percentage of their property value, a high multiple of their income, or have borrowed for a long mortgage term.

If you would like me to teach at your school, give me shout, my rates are very reasonable.

[bioalien]

As long as the application fits the above criteria then a payout of £75 will be credited to your account, with a further £125 credited once the applicant has been issued the first docs from the broker.

This is a long standing campaign which has been operating since summer 2005.

Hi Russell,

Impressive payouts. What's the average rejection rate on this campaign?

[russell cpanuk]

The criteria, has changes to incorporate the near prime, so percentages will change as the new criteria beds in. As with any campaigns percentages differ greatly between each affiliate, however over 65% of all valid first tier leads get the second tier.

In 2005 the campaign was set out to target the adverse credit applications and the scrub rate was high (over 40%) on the first tier, this was due to the near prime or LTV. With the new criteria and higher LTV for near prime we expect this to get better and better.

I have worked out the cost per lead as it is at the moment, which is approx £73 for every lead submitted. Our expectations with this new criteria is, to return affiliates over £100 for each application.

To explain on what I said earlier in this thread. “a lot of affiliates are having success at directing their visitors into a re-mortgage, rather than a secured loan, due to the market conditions”

On your landing page the first question that many of you ask, is to sort out homeowners and tenants.

If the applicant clicks home owner it goes straight to the homeowner application form. What many affiliates are doing now is asking at this stage “do the applications want a re-mortgage or secured loans”, they give an explanation on both and the success rate is good.

Hope this helps

[lethal0r]

I got around 50% rejection of leads when I tried easyremortgages a year or so ago, as did several other affiliates I have talked to.

[russell cpanuk]

Hi lethal0r

The Mortgage site has had a few different Mortgage companies over the years; a year ago it used to be APS, today it CCHL.

I did say in my rely above the scrub rate is high (40%) at no point did I try and hide this fact. The point is now:- criteria has changed, price per lead has changed and we are on approx £73 per lead now, which we hope to improve over the coming months.

[bioalien]

Thanks for the response Russell and lethal0r. Quiet a high rejection rate!

We'll be sending a few leads to trial this campaign and monitor performance very carefully.

[Michael_Anthony]

I see - so the TRUE CPA to an affiliate for a prime lead is £45 less 40% - that's more realistic.

[russell cpanuk]

Obviously you don’t see, it is NOT prime it is near prime and the lead price is £75

[Michael_Anthony]

??? - I was quoting from Sue's post which started this thread. Has it changed since then?

[speedcameras]

2% proc fee on a remortgage??? Russell you are wrong. 0.3 to 0.5 is the average. Lenders are much more cautious with sub prime mortgage lending. 100%+ LTV leads and bad credit mortgage leads are not easy to place anymore.