Most of our new business comes from referrals but we started to use lead generation companies for mortgages last year as we had another two advisers to keep busy.
As I am sure most people will say, the leads can be indifferent and some are an absolute waste of time, but you take the rough with the smooth.
Recently we have had leads come in saying people have adverse credit for which we pay more for, which I accept too as we know they can be more lucrative.
The problem is these leads are first-time buyers, with adverse credit wanting 100 per cent plus loan-to-value (LTV).
Now we know at the moment it is difficult to place adverse with the market as it is with lower LTVs, so these are a waste of time in my mind. I then had a lead come through for a first-time buyer wanting 110 per cent LTV on a commercial mortgage – more chance of plaiting fog, I hear you say.
I think that the lead generation companies should have something that defaults adverse credit leads to a maximum LTV of, say, 90 per cent so that we are not getting charged for pointless leads and 75 per cent for commercial.
Also the applicant is not getting duped into thinking that they can get a mortgage easily as it may be portrayed on the originating website they are on – which doesn’t give advice but is there solely to generate leads – and thus becoming disappointed when we tell them that they need a deposit of at least 5, 10 or 15 per cent.
Surely this would be quite simple to do and would be fairer to the person wanting advice?
Kind regards
Nigel Pamment
Inspirational Financial Management Ltd
