Beacon suspends new lending as it awaits fresh funding next year
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Beacon Homeloans has ceased new lending as it waits for its funding line to be renewed.
As a result, all fully packaged cases had to be submitted to the lender by last Friday.
Beacon’s mortgage asset purchase arrangements, which have enabled it to lend around £2bn since its inception in 2005, will come to a natural conclusion at the end of February 2010.
But one source says this is not the end of Beacon, and that the firm’s sales director Clive Wilson and his colleagues are just adhering to Financial Services Authority guidelines which state that a firm must not accept business if it can’t guarantee funding.
The source says: “Beacon has a glittering future but it is waiting for its funding to be renewed so has stopped accepting new business. There’s no reason to think its funding line will not be renewed.”
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