The firm said it would offer up to 7 per cent commission for converted loan referrals, dependent on the volumes of business transacted by the broker on a monthly basis. Starting at 4 per cent, commission could rise to 7 per cent if, for example, an average of 40-50 loans a month were completed.
Steve Teague, managing director of Click, commented: “As our loan turnaround time is now one of the fastest in the industry, it is possible for these levels of business to be processed. With the average loan size at around £26,000, brokers referring clients for secured loans could potentially enjoy commission of around £1,750 per secured loan.”
Teague added that secured loans had historically not been viewed in a positive light, but the possiblity of regulation in the market would give people confidence. “Those needing additional finance of say £25-£30,000 often find they cannot remortgage, or it becomes impractical to do so because of lender exit fees, so a secured loan is often the simplest alternative.”
Rod Murdison, proprietor of Murdison & Browning, said: “The proposition is attractive, but the problem with secured loan firms is there’s no method of cross-comparison between them as to whether they are any good. A sourcing system of some sort would be preferable. Click is making out that all brokers are commission-driven.”
