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Q: Becoming a UK Loan/Mortgage Broker ( Answered,   0 Comments )
Question  
Subject: Becoming a UK Loan/Mortgage Broker
Category: Business and Money > Small Businesses
Asked by: question1-ga
List Price: $25.00
Posted: 24 Jun 2003 10:39 PDT
Expires: 24 Jul 2003 10:39 PDT
Question ID: 221203
How can i become a loan/mortgage Broker in the UK?
I want to run an on-line loan/morgage brokering service such as:-

www.your-loan.co.uk
www.loanspage.co.uk

How do these companies work? And how can I become a Loan broker?
Exactly what would I need? And where can I gte it?
Links to resources where I can become a Broker would be desirable.
Answer  
Subject: Re: Becoming a UK Loan/Mortgage Broker
Answered By: websearcher-ga on 24 Jun 2003 11:10 PDT
 
Hello question1:

Thanks for the interesting question. 


The loan broker industry in the UK is covered under the Consumer
Credit Act (1974). This Act is administered by The Office of Fair
Trading.

The Office of Fair Trading
URL: http://www.oft.gov.uk/default.htm


A wealth of information about the Consumer Credit Act can be found at:

Consumer Credit Act
URL: http://www.oft.gov.uk/Business/Legal+Powers/Consumer+Credit+Act.htm

and the links that follow from that page. 


Specifically, the following page shows that you need a license to
operate as a credit brokerage:

Consumer Credit Act - does your business need a credit licence?
URL: http://www.oft.gov.uk/Business/Legal+Powers/CCA+licence.htm
Quote: "Credit brokerage - Introducing your customer to someone
offering credit or hire. This is not limited to credit agreements
which are covered by the Act, but also includes mortgages to fund the
purchase of the home of your customer or their relatives."


Information about how to apply for a license can be found at:

Consumer Credit Act - applying for a licence
URL: http://www.oft.gov.uk/Business/Legal+Powers/CCA+applying+for+licence.htm

The fees range between 110 and 275 depending on your set-up. 


There are certain standards you as a businessperson must meet and
uphold to have a license. They are detailed at:

Consumer Credit Act - guidance for holders and applicants
URL: http://www.oft.gov.uk/Business/Legal+Powers/CCA+guidance.htm


There are also many guidelines as to advertising and how business must
be conducted at:

Consumer Credit Act - credit advertising
URL: http://www.oft.gov.uk/Business/Legal+Powers/CCA+credit+advertising.htm

Consumer Credit Act - credit agreements
URL: http://www.oft.gov.uk/Business/Legal+Powers/CCA+credit+agreement.htm


As to how these companies work - I feel the best guide for you would
be to look at information available at other Loan Brokers websites.
I've picke out two for you with good information.

Your questions about Loanspage.co.uk.
URL: http://www.loanspage.co.uk/h/faq.html

UK Home Owner Loans, Online Quotes.
URL: http://www.uk-loan-company.co.uk/loan-questions.html


I hope this information helps with your research.           
                                    
If you need any clarification of the information I have provided,
please ask using the clarification feature and provide me with
additional details as to what you are looking for. As well, please
allow me to provide you with clarification(s) *before* you rate this
answer.
                                    
Thank you.                                     
                                    
websearcher-ga                                     
                                                      
             
Search Strategy (on Google):        
 
"loan broker" license site:.uk
"office of fair trading"

Request for Answer Clarification by question1-ga on 24 Jun 2003 13:17 PDT
The most important piece of information i require is who do i actually
send the information to? as in who/which company do i supply
information on the applicants to get my share of the loan/mortgage
commision? Please dont say i just send it to a bank. I'd like details
of which banks/financial institutions that are offering this service.
Thanks.

Clarification of Answer by websearcher-ga on 24 Jun 2003 14:04 PDT
Hi question1:

While I can certainly understand your desire to have a list of all
financial institutions that deal with loan brokers, I was unable to
find any sources that lists all this information.

It appears that most banks and lending institutions deal with loan
brokers - so the list would be HUGE.

Before You Buy a House
URL: http://www.south-county.org/REGuides/BeforeYouBuy.html
Quote: "Most banks cooperate with loan brokers.
You can go to a broker and obtain a loan through a bank."

From my research it doesn't appear that finding banks/institutions
that deal with loan brokers is your main hurdle - the main hurdle
seems to be picking which lenders you want to do business with and
building relationships with them.

I hope this helps. 

websearcher-ga

Request for Answer Clarification by question1-ga on 24 Jun 2003 15:36 PDT
My main hurdle IS finding the places which will allow me to broker for
them.

These companies state that they search over 400 sources - now surely
they musnt have contacted each bank/lender to make a deal.

Do you now know a SINGLE place while will allow me to become a broker?
without having to manually contact each and every financial
institution?

Clarification of Answer by websearcher-ga on 24 Jun 2003 16:47 PDT
I'm sorry, but the closest thing to this I can find is *affiliate
programs*, where you find customers for established loan brokers and
then you earn commission. With such a scheme, you would not need to
know which lending institutions were being contacted.

An example: 

Loanspage.co.uk
URL: http://www.loanspage.co.uk/h/new-affiliate.html

I am sorry I was not able to find exactly what you wanted. If I had
known that this was what you were looking for when you asked your
original question, I likely would not have answered.

Once again, my apologies for any shortcomings you might feel there has
been in my service.

websearcher-ga
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