Brokers have praised eBay-style bidding as a way of buying leads despite criticism from lead generation firm Mortgage Angels that it is a waste of time.
Nat Daniels, managing director of Mortgage Angels, says: “The problem with bidding for mortgage leads is that advisers are using their work time to bid when they should be spending it with their clients.
“I’m not knocking the system but bidding for leads costs time and time is money.”
Mortgage Angels’ latest advertisement campaign has a dig at the bidding method. It bears messages including: ‘No bidding wars over here,’ and ‘Frustrated with bidding to buy mortgage leads? With Mortgage Angels all our mortgages are one price, 29.50 – simple.’
But David Mowatt, an independent financial adviser at Stone Financial Consultants, says he uses the bidding method of buying leads and finds it to be cheaper than the alternative.
He says: “The main benefit of a bidding system is that you can pick the leads you want ,whereas with other systems you pick an area and are given a bunch of leads.”
Amanda Spalding, mortgage ad-viser at Premier Financial Management, previously paid for fixed rate leads but now bids because she finds it more flexible.
She says: “With the bidding system I can cut the amount I pay for leads. And I’m not paying for leads that I can’t service so it’s a lot more flexible. As an adviser, I have more control and more choice.”
Vanessa Blount, head of paaleads. com, defends the bidding method.
She says: “We offer what we call a standard scheme whereby brokers can choose not to bid. It is up to brokers