A GUERNSEYMAN who left school at 16 made a £1 wager with his NatWest boss that he would build a business worth £100m. And Paul Welch, now 36, is on his way to winning that bet.

Mr Welch launched the London-based mortgage brokerage, Clegg Gifford Private Clients, in 2003 and intends to float it on the Alternative Investment Market next summer.

‘It’s been the hardest, most rewarding, challenging, frustrating and exciting thing that I’ve ever done,’ he said.

‘And it’s not the money that motivates me. Building a business is something that I’ve always wanted – to do things that have never been done before.’

CGPC will also operate under the trading name

largemortgageloans.co.uk, to deal exclusively with loans above £500,000.

‘We look after some interesting people,’ he said, referring to celebrities and key industry figures, whose names he could not reveal.

‘However, CGPC offers a full range of mortgage products – we look after everyone, whether it be a mortgage for £50,000 or £500,000.’

Mr Welch said CGPC had found itself a niche market. Unlike many other brokers, the company does not take commission for advising or arranging a mortgage with third-party lenders, but charges a one-off administration fee.

‘Some brokers might charge a 1% fee. On £1m., that’s £10,000. We charge a flat fee of £195, regardless of the amount,’ he said.

Mr Welch added that he was currently exploring opportunities with his equity partner and chairman, Roy Clegg, to expand into the Channel Islands.

Clegg Gifford & Co. Ltd, a 51% shareholder in CGPC, already has an office operating in Guernsey and Mr Welch believes the connection offers good opportunities for the business to branch out here.

When the company was launched, Mr Welch was the sole employee. He now has 18 staff and that number is expected to increase to 36 within the year and potentially up to 70.

‘It depends on finding the right people,’ he said.

‘We may not need to go that high, but if the business is there, we will employ more.’

Mr Welch is also interested in branching out into the US and European brokerage market.

The company has been influential in bringing new technology to the industry.

It recently introduced the UK’s first ‘text-for-a-quote’ mortgage calculator, an interactive mortgage quote window at the Docklands office and webcam-based interviews.

‘We are trying to provide a personal touch through the use of the Internet,’ he said.

CGPC’s market capital on flotation next year is expected to be between £15m. and £20m., based on advisers’ recent recommendations.