Question mark hangs over future of Beacon

CLIVE WILSON: REALISTIC ABOUT MARKET POSITION
CLIVE WILSON: REALISTIC ABOUT MARKET POSITION

The fate of Beacon Homeloans is unclear after the lender revealed last week that it has placed an undisclosed number of its employees into consultation.

Clive Wilson, sales director at Beacon Homeloans, has not confirmed how many staff are affected but there is speculation it could be the entire team.

He says: “We’re deciding on the future of the business and looking at our options – we are being realistic about our position in the market.

“We are continuing to have talks with potential funders as we have been doing since the beginning of the year, but the market is difficult at the moment.”

He adds: “A few new lenders have launched recently which is encouraging, but it’s still hard to secure a traditional funding facility.”

One source tells Mortgage Strategy that the lender might still secure funding.

The source says: “The game’s not over for Beacon and I’m sure it is doing everything it can to secure the funding it needs. And there’s every chance this will happen.”

Beacon Homeloans ceased new lending in November 2009 as it waited for news on funding.

In 2009 it was estimated to be the country’s 11th largest lender, based on sales.