Oh my, things have got bad....

minimike2

You know things have got bad when...


You are recommending a client stays with Northern Rock on thier SVR.....

So now I am actually paying money out to advise clients! £200 I paid for a lead that ended up in having to advise to stay on the Rocks SVR.

Total lost income in 2008 due to credit crunch now stands at about £6.5k



If only the begining of the end was in sight, but I think the worst is yet to come.

homer_j_3

were they on a together product or was it just high LTV/Change of credit profile combination

rdsmortgageman

I did the same last week. Client went to NR himself when he moved house, it was his second together, he has 2 previous £25k together loans that he converted to personal loans with them. We couldn't get anyone to lend at 95% given all of his other credit commitments. Recommended that he sell and move to something smaller, doesn't want to! Only option is to go on SVR and ride the storm!

petermb_2

rdsmortgageman wrote: »

I did the same last week. Client went to NR himself when he moved house, it was his second together, he has 2 previous £25k together loans that he converted to personal loans with them. We couldn't get anyone to lend at 95% given all of his other credit commitments. Recommended that he sell and move to something smaller, doesn't want to! Only option is to go on SVR and ride the storm!

There may well be somethng you can do for this client. Depending on when the loans were taken out, if prior to 2006 the agreements maybe challengeable. If they are the balance of those loans may be written off. This will enable you to remortgage at a much lower LTV and may open up a whole new range of products to offer your client.

Doing this is not a speedy process but would at least give your client some hope.

MBM

In todays climate why are you paying £200 for a lead?

Conrad

I'm finding this one is popular - C & Gs term tracker at 6.74% with a £99 fee, free legals and valuation and a 1% ERC, up to 90% fasttrack (for speed only of course).

superged

minimike2 wrote: »

If only the begining of the end was in sight, but I think the worst is yet to come.

This is the begining of the end for a while at least, I think the writing is on the wall. We let 3 staff go today I know many other firms are on the brink.

minimike2

homer_j wrote: »

were they on a together product or was it just high LTV/Change of credit profile combination

All three....

They are actually mortgageable, but the deals available just dont warrant paying the fees involved unfortunately.



MBM.....£200 isnt actually for the lead, its for a sat appointment with a guaranteed refund if it doesnt sit, cannot deal, or doesnt have an element of adverse or consolidaiton, so its better than spending £500 on ten leads, of which none might sit with no chance of a refund.

Treadmill

Out of interest, where do the leads come from ? Sounds like selling leads could be profitable.

Dan_Collins_2

Minimike if its mercurial equity or what ever they are called, get out! We spent 1k on a batch and every one was a rate chaser who had already lined up a direct deal. I have had poor feedback from them since.

ALthough before this run they seem to have been very good.

Times are tough!

homer_j_3

Lead Generation companies are pants at the best of times and now I would say even with referrals, people will be disappointed with a broker if they are just looking for the best rate and no advice.