Packaging market “on road to recovery”

Dale Jannels, sales and marketing director of AToM, revealed that October and November 2010 brought AToM its best months of business for 18 months.

In addition, one of its building society partners has allocated AToM £10m to lend by the end of January on complex prime cases, up to 65% LTV on buy to let and 75% LTV on residential mortgages.

Jannels said: "The packaging market has begun to take off again, despite pundits saying it was dead. I believe the sector has turned a corner and is coming back. Lenders coming to market will want quick distribution with minimal cost; we can provide that and are at the front line of sorting out the good and the bad cases."

He added: "Over the last couple of years, consumers have found it very tough, with recent research showing more than two million people are paying their mortgage by credit card. That can't be sustained. The semi-adverse market is struggling and it is going to be a growing market for us, because people are going to need to remortgage as rates increase."

In a further positive move for the packaging market, short-term finance and bridging loan firm Tiuta has announced it is joining the lending panel of the Alliance of Mortgage Packagers and Distributors (AMPD), allowing members to access its range of products.

George Patellis, chief executive at Tiuta, said: "It's no secret that the packaging arena has been hit hard over recent years. However, packagers continue to play an important role and there are increasingly positive signs emerging across the specialist mortgage markets.

"The importance of strategic distribution and strong affiliation partnerships remain key components in the market and we are happy to support AMPD as it looks to reinvigorate the packaging arena."

Liza Campion, director at AMPD, said: "As the only surviving packager/specialist distributor alliance, AMPD wants to work closely with lenders that recognise the importance of this distribution channel. It is vital that we work with our lender partners to find ways in which we can add additional value at a time when it's no longer about quantity, but more about the quality of the presentation and business being submitted."

Nevertheless, Jannels acknowledged that the days of the pure packager are gone, with those that diversified beginning to succeed again.

Jannels added: "Once lenders have paid back the Special Liquidity Scheme, they will want distribution, so I can see specialist distributors popping back up.

"There will always be clients that don't fit the mould or lenders' credit scores; they need alternative avenues, which we can provide.

"Everyone has to be positive in our market. We are still here and have lenders that want to lend. The Tiuta and AMPD tie up is another good sign for the market."