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C2 abandons packaging

Industry pundits say C2 – Financial’s decision to close its doors to mortgage business last week is a sign that the traditional packaging market could soon be a thing of the past.

C2 blamed its decision on the economic downturn. Parent company County Mortgage Services says the firm remains well capitalised and will expand into other markets.

David Wylie, chairman of C2 and County Mortgage Services, says: “By preserving the company’s infrastructure, databanks and capital we will ensure our ability to re-enter this sector when conditions improve and meaningful levels of mortgage lending become available again.”

Ian Balfour, managing director of Solent Mortgage Services, says C2’s move is a sign of the extent to which traditional packaging has contracted and that it is fast running out of options.

He says: “Any business has to consider its strategic position and decide whether it is viable to continue operating in the industry. As a traditional packager there are not many options left in the market.”

Andrew Seymour, chief executive of Optoma Mortgages, is a packager that abandoned the market this summer as a result of the limitations it faced.

He says: “Operating in packaging is like flogging a dead horse. I think the market is done.”

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