Loans etc launches £299 flat packaging fee

Loans etc has introduced a flat £299 fee charging structure for all application form only referrals for secured loan lenders, including First European, Link Lending and White Label.

Introducers will retain the remainder of any fee, lender commission or Payment Protection commission earned on all completions initially until November 30, 2008.

Graham Brent, managing director of Loans etc, says: “Since accelerating our drive for B2B business this year it is clear that unpackaged application form only enquiries, where we have complete control over customer facing sale and process is the area where we have the greatest success, conversion and compliance satisfaction.

“Although we are happy for introducers to retain control over certain selected parts of the loan sale and process we hope that this offer will encourage many smaller introducers to leave the specialist skills of selling and packaging a loan enquiry that they have identified, in the hands of experts who will take away all the related time and administration , reward them attractively and allow them to concentrate on there core business activities.”

Brent adds: “Having conducted a review of all our main competitors commercial terms, what is clear is that for introducers the options are far from clear ! Some headline offerings appear attractive but the various calculations of combinations of % splits, with and without PPP and various deductions adds unnecessary confusion to what should be a simple communication.

“All areas of our industry are being driven down on margins but I am confident that our packaging capabilities and underwriting skills can make this cost structure effective and lucrative for loans etc , our introducers and all our lending partners as well as creating a more transparent structure for smaller introducers, more in line with what happens in the first mortgage market.

“We are at an advanced stage with various distribution and network arrangements that will fit in with this marketing initiative but still believe a tough 2009 is ahead for all involved in the secured loan industry.”