Staff placed into consultation at SLS
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All eleven staff members at packager Savills Lending Solutions have been placed into consultation.
The move follows a strategic review of the firm which concluded it could operate with a smaller workforce.
Melanie Bien, a director Savills Private Finance, says: “We placed staff into consultation this week. A lack of funding and lenders withdrawing from the market resulted in a review of the business. The business will still continue, but unfortunately with less staff.”
Only a couple of redundancies are expected to be made and one source says: “SLS are a strong company and will survive the market downturn and continue to operate when the market picks up.”
Rob Jupp, formerly managing director of Personal Touch Packaging joined Savills in September 2008 to launch SLS.
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Readers' comments (8)
David Smith | 3 Dec 2009 12:45 pm
It is sad to see more redundancies in the packaging market. However it must be admitted that the only packagers that have been hanging on are those who packaged for Beacon and possibly bank of China, and those who have or are part of a network. The other survivors are the small firms who are also directly authorised. If a few lenders do re-emerge next year there could be a distribution issue.
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Darryl Dhoffer - WLM Money | 3 Dec 2009 1:12 pm
Yet another sad story, but a fact for many of the remaining packagers in the marketplace, that are taking measures to streamline business activity which has been reduced. As a packager ourselves, which launched Feb 2008, we ensured our operations remained lean and effective, plus ensured we diversed into multiple financial product offerings.
Hope we dont see any more casualties, but hats off to Savills Private Finance for addressing the situation
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Ketan Yadav - Avenue & Co Private Finance | 3 Dec 2009 1:14 pm
With lenders increasing their distribution strategy to direct only and more stringent criteria, it is becoming more and more evident that mortgage broking is becoming a dying breed.
Once lenders have taken on a mortgage client, they will cross sell, offer better deals direct and dual price.
Unless more lenders come in with intermediary products, it seems like its the end of the road.
We for one are seriously considering closing our brokerage in 2010 for exactly that reason.
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Roger Morris | 3 Dec 2009 1:27 pm
Rob Jupp is an incredible leader and will ensure everything is done to ensure SLS carries on. These are very tough market conditions, but one thing is definite the market will need packaging next year when lending returns. Many lenders are sat in the wings waiting to return and they need the distributional and processing skill Rob has, I am sure he will make all the correct decisions.
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Ray Bohringer | 3 Dec 2009 2:44 pm
I'm afraid the old style packager is dead.Whilst I agree that, with a return to lending will come the need for distributers,I think the model will be different.To succeed in a Prime market requires very low overheads,fewer people and far less manual processing.
Rob is a very experienced operator that I'm sure will come through this. We wish him and his team well in the future
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Anonymous | 3 Dec 2009 2:50 pm
I dont think there will be the need for packagers in the future. We are unlikely to see the sub prime mortgages of yesterday. There will be continued pressure on procuration fees, and the packaging fees will not be available at levels that they were. Sourcing systems and lenders' on line systems are getting better all the time.
Companies like Savills who have a large sales force can run a small department placing the more difficult mortgages, but that is very different to packagers operating in the open market.
For better or worse, times have changed - I think brokers can survive, but the market will not be there for the packager.
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Vic Jannels | 3 Dec 2009 6:42 pm
I have read the previous comments and share the general sadness that there are to be more casualties in our sector. I wish Rob and all of the team well.
That said, I do not share the views of those who say that this is the end of the road for the packaging sector. Far from it. Demand is high and will increase. Lenders will need support once funds start to flow again and, having contracted dramatically in many cases, they will need to look for both marketing and distribution. It will not feel, smell or sound the same but it will be back. Entrepreneurial spirit will, as ever, prevail.
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Dale Knight | 9 Dec 2009 10:22 am
I think it is fair to say the future for packagers is doubtfull at best.
The return to lending I feel will happen but not in time to save most in this sector.
The market will, in my opinion, return to mid 90's with the odd lender looking for realistic low volume at higher yield (which is how this market should have always been) and as such this will once again stimulate others back looking for high margin.
Promiscouous lending in volume is gone for years and pacakers will need top distribution channels and will need to charge fees like commerical specialists.
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