Have I got this right regarding loan leads.

[Brad123]

Tweet

There is quite a few sites out there for loans that say they will compare against the top 400 loans etc, now my question is most of these sites get the lead then pass on to other loan sites like AFM etc who have buyers ready, nowdo these buyers have a system where they will compare all the top loan providers or are these buyers loan lenders themselves.

Im wanting to set up a new site to get secured loan leads and mention we compare lenders from all top names/400 companies etc but when I send this lead onto whoever I choose will they provide this service or just offer their own loans?

[JSTloans]

First question is “are there 400 secured loan lenders in the UK?”

A whole of market broker will have many lenders on his panel; however these lenders will have different plans, dependant on the applicant’s circumstances. Many individual lenders have 20 plus plans that they offer at any one time.

Most lenders have a simple chart which outlines the LTV, level of arrears and interest rate range, which can be sold for each plan/product they offer. All a broker does is simply high-light which product/plan on the chart, to the applicant’s circumstances. The hard part is selling and packaging the deal.

Pick a whole of market broker who you feel you can trust, and instantly you have 400 plans/products in on form.

[peter113]

a master broker will have access to 12 or 13 lenders at best - considering the credit crucnch this is likely top be 7 or 8 now but thats pretty much the whole market . however master brokers will not usualyl compare Halifax, Barclays, Fair & Sqaure etc etc as they do not pay commission so most lenders you will be putting your clients in contact with are First Plus for good credit history and the balance tend to cater for risk profiles, no proof of income etc - this is where the money is

bold move at moment as market shrinking and with house prices falling the conversaion rates of loans is falling and will soon go the way of mortgage leads where prices are dropping as less brokers now willing to buy

you will get a better pay rate dealing direct with a broker but a third party does ensure you get a better distributrion & wider scope for acceptance / therefore sell more leads in the long run

guess it depends how many leads you aim to generate

[Michael_Anthony]

I think you'll find that most sites claiming to offer this comparison service are very careful in using the wording that they will compare up to "400 loan plans". The inclusion of the word "plans" makes the site's claim legitimate, as in theory most lenders, First Plus etc. included, will offer a whole range of APR's and criteria.

As Peter mentions above, sending leads to a large broker, or to a selection of brokers via a network such as our own, means that you are genuinely offering the applicant the chance to have their needs compared to all the loan plans on the market in order to find the most suitable one for them.

I would also add that such an approach is always better than giving the applicant the impression that they will only be offered a single product, and sites that make these claims have proven to convert better.