Loan Provider Falls Victim To The Recession

Mon, 17 Aug 2009

Personal Touch Financial Services (PTFS) has announced that it is shutting down its secured loan business, Needaloan.co.uk.

PTFS said it will still offer borrowers secured loans but through a white label proposition with Gateway2 Finance .

Dev Malle, sales director of PTFS, explained that the decision to close the second-charge loan provider was due a lack of funds in the secured loan market.

"It became uneconomical to run needaloan.co.uk, and we are of the view that the second charge mortgage market isn't coming back any time soon," he said.

John Stewart, director of PMI IFAs, said: "It must be very difficult for (PTFS) to be able to place business. If first charge is difficult, second charge is going to be more difficult because they are a higher risk."

Mr Stewart said the fact that consumers are trying to reduce their debt during the recession will have a knock-on effect on all areas of business.

He continued: "I have seen a number of brokers that have been in the business for a number of years pull out recently. You really are vulnerable if you stick to one class of business."
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