A Beginner’s Guide

All you need to earn money from introducing secured loan business to Loanoptions.co.uk is a Consumer Credit Licence (CCL) supplied by the Office of Fair Trading (OFT).

It really is that simple!

The Consumer Credit Act (1974) requires most businesses that offer credit or to lend money to consumers to be licensed by the OFT. You don’t need to be a qualified mortgage or financial adviser, however you must commit to following an approved code of conduct as outlined on the OFT’s website at www.oft.gov.uk.

It is simple to apply for a CCL. Simply download the relevant form below to apply:

Sole Trader Application Form

Partnership, Company or Other Organisation Application Form

Once your consumer credit licence is in place, all you need to know is how to identify a secured loan lead and refer it to Loanoptions.co.uk.

Loanoptions.co.uk is a secured loan broker, which means that we will handle your referral in its entirety, process all documentation and administration, and take full responsibility for any advice given in relation to secured loan products and any related insurance.

You will be paid a commission upon case completion of any referral you pass to Loanoptions.co.uk.

• Secured loan lead identified by Introducer
• Client referred to Loanoptions.co.uk
• Best-advice solution sourced by Loanoptions.co.uk from whole-of-market panel of lenders
• Client contacted and product sold
• Documentation issued to client
• Case packaged in line with lender specifications
• Case completed by lender, funds released to borrower
• Commission paid to Introducer

• Online - Use our simple online referral form to submit your application
• Fax - Download our secured loan referral form and fax it through to our Introducer Supprt Team on 01625 521003
• Telephone - call our Introducer Support Team directly on 0845 430 8090 to discuss your client's requirements

You will receive a full underwritten decision in principle with a loan quotation within 24 hours. We can contact you or your client with the details of the proposed loan The choice is yours.

A secured loan or second charge is finance borrowed in addition to a pre-existing mortgage. These are only available to homeowners and work in a similar way to a mortgage, with the credit placed against the value of the property. Although there are some comparables between a secured loan and a mortgage, the two products are completely separate.

There are a large number of secured loan lenders operating within the UK, offering products to suit all circumstances. In the same way as most banks and mortgage lenders’ products are defined, secured loans fall into three main categories:

Prime

A typical prime applicant for a secured loan would have a clean credit history and high levels of equity in their property

Sub-prime

Applicants with bad credit history caused by mortgage arrears, defaults on other finance or CCJs would fall into the sub-prime category

Non-status or non-conforming

Non-status products are more suited to self-employed applicants wishing to self-certify their income, or those applying for a secured loan against what a lender would define as a non-standard construction property type or basis of ownership

One of the main benefits of secured loans is the fact that they are not linked to the borrowers existing mortgage. By keeping these separate, a secured loan can be taken over a shorter term than the main mortgage account. If for example, an applicant has 40 years left to repay their main mortgage, they may not want to borrow an additional sum and have to pay interest over such a long period of time. Secured loans can be taken over terms from 5 to 40 years.

Similarly, if a borrower is currently on a fixed rate for their first charge, they may not want to expose their entire mortgage account to a higher rate by remortgaging, particularly if their credit status has deteriorated. They may have been declined for a further advance on their existing mortgage.

Another advantage of secured loans is the speed at which they can be arranged. Typically, a secured loan can be completed, and funds released to the borrower, within around 21 working days from application.

Secured loans do not require the borrower to pay any up-front fees. All of the expenses associated with arranging the finance are absorbed by Loanoptions.co.uk, who will also provide all of the required legal documentation and advice on the best products available with no obligation for the borrower to proceed.

• Extensive range of products to suit all circumstances, for almost any purpose
  • See Product Guide for full details of all of the secured loan products currently available
• A secured loan may be a more appropriate recommendation than a remortgage
  • Avoid early redemption penalties
  • Protect competitive fixed rate
  • Shorter repayment period
  • Avoid exposing entire mortgage account to a higher rate if the clients’ credit status has deteriorated
  • The client may have been declined a further advance
• Fast completion
  • Average turnaround to completion 21 days
• No administration
  • All documentation is managed on behalf of the introducer and sent directly to the client
  • Free documentation courier service to aid increased conversion rates
• No up-front client fees
• No compliance responsibilities for the Introducer
  • Loanoptions.co.uk takes full responsibility for any advice given in relation to product recommendations

A typical breakdown of conversion and completion rates is outlined below, with projected earning potential based on average loan amounts. An introducer can increase their earning potential by pro-actively prospecting for new secured loan business using the resources & support available free through Loanoptions.co.uk.

Average commission currently paid: £1,250.00

Typical conversion rate to completion for a pre-qualified referral:33%

Average number of cases completed annually:17

By referring just 1 secured loan a week to Loanoptions.co.uk for processing, you could enhance your existing income stream by £21,250 annually!

Does your client?

• Wish to borrow funds for any purpose?
• Want to protect their entire mortgage from a higher rate?
• Require funds within 2-3 weeks?
• Wish to avoid early redemption penalties?
• Require finance over a shorter term?
• Need alternative funding after being declined a further advance?
• Require a higher LTV calculation?
• Want to avoid paying any up-front fees?

If the answer is yes to any of these questions, then a secured loan could be a viable recommendation.

Once you have identified a secured loan lead, you can refer it online to Loanoptions.co.uk to handle the entire process on your behalf, or contact your dedicated Introducer Manager on 0845 430 8090 to discuss any case in principal.

Why should I recommend a secured loan to my client?

There are many reasons why a secured loan may be considered more suitable than a remortgage or further advance. Contact your dedicated Introducer Manager on 0845 430 8090 to discuss any case in principal, no obligation.

I’m not an expert on secured loan products. How do I know my client is getting best advice?

Loanoptions.co.uk searches a whole-of-market panel of secured loan lenders to source the most appropriate product for your client. The best advice recommendation will always be given, and you will receive regular case status update emails to keep you informed of how the case is progressing. You can also discuss the product recommendation with your clients’ case underwriter at any time.

Are secured loans regulated, and what about compliance?

Secured loans are regulated by the Consumer Credit Act, Loanoptions.co.uk takes full responsibility for all of the compliance issues associated with advising and arranging a secured loan and any related insurance products.

How long will it take to complete?

On average, a secured loan takes approximately 21 working days to complete.

How will I know what has been recommended?

You will be sent regular case updates which will outline all recommendations made to your client. You can also contact your clients’ case underwriter at any time to discuss the products available.

What if my client decides not to proceed?

If your client does not want to proceed with the secured loan recommended, you will be advised immediately. Loanoptions.co.uk operates a strict no cross-selling guarantee and will never attempt to make a recommendation on any product other than a secured loan.

How do I submit a case?

You can submit your case online at www.loanoptions.co.uk. If you prefer you can contact your Introducer Manager directly on 0845 430 8090 and discuss the case prior to submission. Alternatively you could download a paper referral form from the stationary cupboard on our website and fax through to 01625 528 765.

Telephone Support

We’re available to discuss any query or case in principal, no obligation, prior to referral. Contact your dedicated Introducer Manager on 0845 430 8090 today to get started.

Online Support

Utilise the award-winning online facilities at www.loanoptions.co.uk to become the most efficient Introducer you can be:

Use our Blueprint to secured loans to realise the earning potential available through this valuable product offering.