Simon Williams, head of business development at paaleads.com said: “We’re pleased Leadbay have reacted so quickly to our own recent reduction in LTV limits for mortgages. However, by encouraging brokers (who are only human) to pick safer, lower LTV bands, not only will perfectly acceptable higher LTV consumers be left on the shelf, but the lead sources will be left with lots of leads unsold.
“Unfortunately, if it doesn’t work for the consumer and it doesn’t work for the sources, brokers will find their supply drying up. The golden triangle of source-consumer-broker has to be maintained if the model is to work for everyone and be sustainable”
Williams continued: “The pricing of lower LTV leads also needs consideration. They will undoubtedly attract a higher price, but it doesn’t mean the lead is any more likely to convert to business than a higher LTV lead. Indeed, LTV is only one component of a lead; ultimately it is the consumer/adviser interaction that is important.”
"In the current climate it makes more sense to pay a fair price for a mixture of LTV’s up to 90 per cent, than much higher prices for leads that have an equal chance of converting to business."
