Money Partners stops lending

Goldman Sachs owned Money Partners has suspended new lending due to low demand for its mortgage products.

In a bulletin to brokers this morning, Peter Brennan, operations director of Money Partners, says: “Money Partners will continue to monitor and evaluate market conditions but at present it is not commercially viable to carry on originating new mortgage loans.”

One packager says: “Its pricing and criteria meant we did not do a huge amount of business through Money Partners, but it is not good news for the market.

“It all rests on the shoulders of Beacon and The Mortgage Works to fill that gap now.”

However a spokeswoman for TMW says: “We would not consider ourselves to be in the same category as the likes of Money Partners or Beacon Homeloans, so Money Partner’s latest news bears little relation to us and we have no plans to change our strategy for self-cert and buy-to-let.”

One source close to the lender was keen to stress to Mortgage Strategy Online that this was a “suspension” and that it was not gone altogether.

They added: “We’ve not closed. This is not shutting up shop. It is merely a suspension of lending.”

It will continue to process applications until 20 February. All offers issued during this period will be honoured until their expiry date.

Money Partners online e-Decision tool will be suspended on Friday, February 6 2009. But it will continue to issue mortgage offers up to and including Friday, February 20.

Chief executive Colin Sanders and directors Philip George and Daniel Sparks resigned from the lender in December.