A leading comparison site in the UK has sold 50% of its stake to Financial Media Group (FMG). The site, Guarantor Loan Comparison, has established itself over the last 4 years as a leading comparison website for guarantor loans.
Financial Media Group, moved into unsecured loans in 2010 after selling ICMG to Bear Stearns. ICMG specialized in mortgage packing and ran a successful b2c mortgage brokering business, processing over 500 mortgages per month at its peak. The company worked closely with mortgage brokers such as John Charcoal.
“We are very excited about our partnership with Guarantor Loan Comparison," said Financial Media Group CEO Ray Bohringer.
‘With a strong foot in the market, it gives us a healthy position in the industry to liaise and negotiate with other guarantor lenders. With the site’s proven track record for generating organic traffic and direct inquiries, it fits in well with FMG’s lead generation abilities and a chance to grow in this industry.”
Daniel Tannenbaum, is the Israeli-born founder of Guarantor Loan Comparison. He continued, “This strategic partnership is very exciting and will help the company grow. It will allow the site to maximize its potential and continue to generate a high volume of leads online.”
The guarantor loans industry is regulated by the Financial Conduct Authority and has an estimated value of £400 million.
With around 12 active guarantor lenders in the UK, Bournemouth-based firm Amigo Loans makes up 90% of the industry and last week announced its plans to float the business for £1 billion.
The unsecured product requires customers to find another person to co-sign their loan agreement and guarantee repayment in the event of missed repayment. The product usually appeals to those with adverse credit histories and those that may have been turned down by traditional or mainstream lenders.
The average lender charges a rate of 49.9% representative APR, with loans available from £500 to £15,000 over 12 to 60 months.