Packager, The Mortgage Placement Company (TMPC), has had its agency agreements with lenders, Mortgages plc and Kensington Mortgage Company cancelled, forcing it to close and the official receivers to be called in.
The decision is thought to have been taken after a series of meetings between those concerned over the last few weeks.
Peter Beaumont, sales and marketing director at Mortgages plc, confirmed the lender had made the decision to sever its ties with Mortgages plc.
He said: ‘Applications which have been submitted to us via TMPC, and which are in the process of being underwritten will be honoured, but no new cases will be accepted. On-site underwriters were withdrawn on 24 March. Mortgages plc has a legal packaging contract with TMPC and for that reason I cannot divulge specific reasons for our decision.
‘Despite detailed discussions with the directors they were unable to convince Mortgages plc that TMPC is able to provide brokers and borrowers with a sufficiently reliable service.’
Both lenders began their relationship with the packager last year, filling a gap left by GMAC RFC severing its relationship with TMPC in June 2002, without stating publicly why.
Alistair Pate, marketing manager of Kensington Mortgage Company, confirmed the lender had terminated its relationship with TMPC, but declined to comment further.
Neither Hassan Draper nor Edwin Coughtrie, the directors of TMPC were available for comment.