The news that Bradford & Bingley has been nationalised this morning and that Mortgage Express will no longer offer new mortgage products has come as a blow to packagers.
The nation’s largest buy-to-let lender has in the past been a favourite among packagers but slowly decreased its presence in the market over the past few months.
Matthew Arena, managing director of Exclusive Connections, says: “We did a lot of mortgages through Mortgage Express a year ago and this is not good news in any shape or form.
“We have slowly been moving ourselves away from offering the products as its rates got less competitive. If you had asked me what impact this would have had on our business a year ago it would have been huge, and although the blow has lessened it is still not good news.”
Bob Hope, head of sales and BDS Mortgage Group, says it hopes the lender will come back into the market at some point in the future.
He says: “Mortgage Express withdrawing would have impacted us a lot a year ago but we have changed our distribution model, and it has slowly been pulling out of the market by increasing its rates.
“It is not clear as to whether it has gone for good, I hope not, it did offer some good products.”
Mortgage Express removed three major packager associations from its distribution panel back in June, cutting it by more than half.
Several broker partners were also removed as the lender streamlined its distribution.
All mortgage offers that have been issued will be honoured, in line with the terms outlined in the specific conditions of each offer.