Chase not in administration

Chase UK has denied it has gone into administration despite revealing last week that the business is winding up.

Lenders that have assumed an administrator will be appointed are withholding proc fees from the firm.

But Mortgage Strategy can reveal this is not the case. Sour-ces in the packager say Chase UK chose to voluntarily close in a solvent state rather than face forced closure as a result of market conditions.

Simon Robbins, managing director of Chase UK, says: “Lenders still owe us money but some of them think they should pay the administrator rather than us.

“But it’s vital that lenders continue to pay us as we need to settle accounts with brokers and introducers.”

Last week Terry Pritchard, majority shareholder in Chase UK, told Mortgage Strategy that the firm had to close because it had been unable to adapt to tough economic conditions.

But Pritchard stresses the move is not another nail in the packaging sector’s coffin.

He says: “There will be survivors of the credit crunch but Chase UK could not adapt quickly enough to changes in the market. Obviously that’s not going to be the story for all packagers.”

Pritchard has received support from the industry.

Kevin Friend, strategic partnerships director at Mortgages., says: “Hats off to Pritch-ard. He has fought hard to continue to offer his customers, staff and service providers security and a future.

“His pride has not got in the way and he has made an inevitable but sensible decision. Pritchard’s integrity remains intact.”

John Mawdsley, spokesman of the Alliance of Mortgage Packagers and Distributors, says he is disappointed about Chase UK’s demise.

He adds: “Some firms find it easier to adapt than others. Maybe the ones that fail were yesterday’s truth rather than tomorrow’s.”