The struggling packaging community has been rocked by news that Beacon Homeloans is to stop issuing mortgage offers in 2 weeks. In a email to its packaging partners, Beacon sales director Clive Willson said that the lender was trying for extra finance.
BestAdvice.web understands that its current funding arrangement with German bank HypoVereinsbank (HVB) will not be renewed and Beacon directors are urgently looking to seek out different arrangements.
In his email, Willson said: “Between now and February 2010, in close liaison with the FSA, Beacon will be rigorously managing the conclusion of its asset purchase arrangements, and to help customers to whom mortgage offers have been created in completing their loans within the stated validity of their individual mortgage offer.
“To ensure that this is often achieved, and in keeping with regulatory needs, all totally packaged applications on the current Beacon product range, prepared for first time offer and among the packagers monthly quota, can want to be with Beacon by shut of business on Friday 13th November. No new mortgage offers can be issued by Beacon when close of business on Friday 27th November.”
He added: “With an announcement of this importance it wouldn’t have been possible for me to get around to visit you all personally in sooner or later, hence the announcement by email. I will, however, be contacting you all individually to debate the announcement in a lot of detail.”
One packager who spoke to BestAdvice.web anonymously said: “We’d spoken to Beacon earlier within the week and concluded that everything was fine until February. We’re shell-shocked.”
Beacon, which launched in 2005, was one in all the few players left concerned in specialist lending and a range of packagers are heavily reliant on their arrangements. If Beacon is unable to secure another funding line then the worry is that the already diminished packaging community will be severely, and presumably fatally, wounded.