Portsmouth-based packager Chase UK made the decision yesterday to wind down the business in the face of current market conditions.
John Mawdsley, spokesman at the Association of Mortgage Packagers and Distributors says he is disappointed to hear about another packager that has left the market.
He says: “Some firms find it easier to adapt than others, maybe in some ways they were yesterday’s truth rather than tomorrows.”
Mawdsley says that to survive packagers need to offer a wider range of products and not focus solely on the sub-prim market.
Terry Pritchard, majority shareholder at Chase UK, says the company needed to be closed as a result of its inability to adapt its culture to the current market.
He says: “There will be survivors of the current tough times but Chase UK is an example of a company that’s culture couldn’t adapt quickly enough to the changes in the market. Obviously that’s not the story for everyone.”
As a result of the closure 10 employees will be made redundant. But the decision was made in recent weeks to stop accepting new business and so only pipeline cases remain.
A percentage of these cases have been taken on by em-financial, which features on many of the same panels as Chase UK.
Roger Morris, managing director of em-, says: “Following a decision this week by the shareholders at Chase UK to close down the business because of market conditions, it has entered into an agreement with em- to service a percentage of its pipeline business.
“The arrangement will see em- process the pipeline business to ensure Chase UK’s broker clients are treated fairly.”