The Financial Services Compensation Scheme has declared 42 firms in default, seven of which are mortgage brokers.
The list of 42 firms also includes 28 investment and life and pension firms.
Customers of those companies can now make claims for compensation to the FSCS, which is funded by an industry levy.
The following seven firms, classified as mortgage brokers by the FSCS, have been declared in default:
- Select Mortgage Solutions
- Warwick Wright Financial Services Ltd
- G E Day & Company Ltd
- The Mortgage Shop (South East) Ltd formerly t/a Investaco and also Packaging House Ltd,
- Mortgage Shop (Shoreham) Ltd
- M G Open Ltd
- UquoteUS Ltd
FSCS head of communications Mark Oakes says: “FSCS protects consumers around the UK when authorised financial services firms cease trading.”