c2-financial says a number of packagers and brokers are on the verge of insolvency because of a downturn in business volumes and tighter margins.The packager has been monitoring returns submitted to Companies House as part of its acquisition plans and warns that many businesses are suffering in the present climate of eroded margins as they haven’t adapted to a slimline world. David Wylie, group chairman of c2-financial, says: “Our business model has allowed us to build up a significant capital balance and we see acquisitions of other packagers and brokerages as a way to accelerate our growth in terms of distribution and profitability. “We have been watching the financial performance of competitors and it is evident that a number of substantial packagers and brokerages are experiencing significant downturns in business volume and profitability. It appears that certain businesses are on the verge of insolvency.” He adds: “Some firms’ management structures aren’t ensuring the business is run efficiently. These companies are being run as small businesses and management teams are making the wrong financial decisions. We believe they will be looking for an exit to avoid calamity.” C2-financial says it will continue to seek suitable companies to acquire. It has experienced sustained significant growth over the past three years and last year posted profits of over £1m. It has made no secret of the fact that it has an ambition to become the largest packager in the UK and its strategy is to expand its distribution to achieve this aim. C2-financial recently launched a sub-prime fixed rate cashback mortgage with free valuation and no application fee. The two-year fixed rate, which is funded by Southern Pacific Mortgage Limited, is fixed at 6.04% until December 1 2008 and has a maximum LTV of 65%. It features a 0.75% client cashback on completion and is available exclusively from c2-financial. Extensive County Court judgements and adverse history are allowed with the product. There is an early repayment charge of 6% for the first two years but there is no higher lending charge. The proc fee is 1.25% and there is an arrangement fee of £795.
Kensington Group has increased its shareholding in Money Partners Holdings Limited from 20% to 57.5% following a successful first two years’ partnership. Kensington will pay an initial consideration of £13.1m for its extra stake and may pay a deferred consideration in 2009.
I ignored the siren warnings and hit the rocks of Alliance & Leicester’s specialist lending unit, and I’d like to know if you’ve had a similar experience, says Sue Read
In the face of mounting media speculation, Bank of England governor Mervyn King last week claimed that the outcome of this Thursday’s Monetary Policy Committee meeting is not a done deal. Try telling the pundits that. Most seem positive that a 25 basis point rise is a certainty and that the market will be under […]
The government has launched a National Housing and Planning Advice Unit to provide independent advice on improving housing market affordability.The Unit will help strengthen the housing market evidence base and analysis currently available to the regional planning bodies. This will help to ensure that new homes identified in regional plans have a positive impact in […]
A survey conducted by Johnson Fleming at the Pension & Benefits Show 2014 highlighted the key challenges faced within organisations post auto-enrolment. The results showed that communicating the changes and the value of them to staff, and receiving timely data from the payroll provider proved to still be the most challenging aspects of managing an auto-enrolment scheme.
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