London & Scottish cease trading....

[peracto]

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All concerned

Just had an email from my Broker manager at London and Scottish (see below). Thought I'd share this with everybody as some of those affected may not get the news in time. Do not send any more apps their way! Its a worrying time.....



Dear Introducer



I am writing to inform you due to current market conditions London Scottish Bank is proposing the closure of its broking business. This business trades as London Scottish Broking, Personal Loan Centre, Easy Loans and Pacific Home Loans.

We will take no new applications with immediate effect and have set a deadline for completion of pipeline cases to be:-

16th May 2008 Unsecured cases

30th May 2008 Secured cases

As stated we will not accept any unsecured or secured applications from the 23rd April.

For pipeline business the final date for receipt of credit agreements will be the 9th May. Any deals received after this date will be sent back immediately.

All current secured cases where an offer has been made will continue to be processed in line with the dates outlined in this letter.

All commission payable for the pipeline business will be forwarded on the 20th May for unsecured cases and 30th May for secured cases.

As you will appreciate this is an extremely difficult time for our staff and the industry but would like to thank you for your support throughout our relationship.

If you have any queries about this announcement please call 0800 043 8711.



Yours sincerely



Simon Harrison

London Scottish Broking

[Leon2000]

Well - yet another one biting the dust. I just don't understand how these business' are 'suddenly' going out of business. Surely it's a case of growing too quickly? Or maybe just not diversifying quickly enough - moving to smaller offices sooner, shedding some staff sooner etc etc. I've seen this time and time again with friends in business, when the going get's tough (and not in all cases) you have to look at your business hard, see where unessecary money is going and change accordingly.

This is not a good sign, but on he flip side, helps companies like us (we only deal with Introducers) pick up more business. It's definately tougher out there but like all storms it'll calm down.

[peracto]

Hopefully with the advent of the Government Backed Bond Scheme lenders will start lending again. I don't think we'll ever see the dizzy heights of the previous 5 years but that might not be a bad thing. A slightly more responsible attitude towards lending in the first place probably would have prevented a lot of this mess.

On the flip side, DM and IVA business is strong at the moment.

[JayFCF]

I just don't understand how these business' are 'suddenly' going out of business. Surely it's a case of growing too quickly?

Thats it exactly. London scottish were the ONLY lender to be lending 80% UNLIMITED ADVERSE on category 1 buildings AND 75% UNLIMITED on category 2 buildings meaning even if you lived on the 500th floor of a prefabricated ex council flat you would have still got a mortgage. As the other lenders pulled london scottish got bombarded with more business than they could ever imagine. All the absolute **** of the mortgage world the bottom 1% of the market and their dogs were put to london scottish overnight. A result of this meant just a mere few weeks later they closed there doors to business.

helps companies like us (we only deal with Introducers) pick up more business.

Surely you getting more business is completely pointless if there aren't any lenders to give it to?

[Leon2000]

There are still deals to be had across both prime and sub-prime. So more business naturally means more deals...