Money Partners suspends lending

Packagers mourned the loss of another lender last week as Money Partners slammed the brakes on new lending.

The lender says it has withdrawn its products due to low demand. Packagers claim its mortgages were priced so high that it was already effectively out of the market.

One source at the lender stresses that the move is temporary.

They add: “We have not closed for business – this is merely a suspension of lending.”

Despite its high rates, the industry has taken Money Partners’ exit as a bad sign.

One packager, who asked not to be named, says: “It’s rates were high and criteria stringent but to see it stop lending is soul-destroying.”

Money Partners will continue to process applications and issue mortgage offers until 20 February.

Former chief executive Colin Sanders resigned last December along with directors Philip George and Daniel Sparks.