The PAA generates leads via the moneysupermarket.com portal and then sells them on to brokers. Under the new system brokers will bid for leads by postcode areas and be charged a sliding scale fee, depending on the number of other bids from brokers in the same region.
The GPMA sources leads from Homes-on-Line website and intermediaries can bid for particular mortgage types, like buy to let or European, again by postcode area. Guy Baker, director of the GPMA, said: “Brokers will be able to choose from different sectors like buy to let or adverse.”
Stuart Glendinning, managing director of the PAA, said: “To kick start this new pricing method we have set prices below what we believe to be the market value to attract new intermediaries. In the chosen locations, intermediaries will be able to bid up or bid down the lead price although there will be a minimum price threshold to ensure that the websites generating the leads receive adequate remuneration for the quality of leads sourced.”
Commenting on the development Rob Clifford, managing director of Mortgageforce, said: “I think this is good news for brokers. There is a market tolerance of around £25 to £30 pounds for leads but if there is an excess this would seem a good way sharing them out.”
