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Em chief denies it is the end for packagers

Em financial managing dir-ector Roger Morris has dismissed warnings that the closure of Lehman Brothers’ two UK subsidiaries, SPML and Preferred, could signal the final blow for the majority of packagers.

The Mortgage Practit-ioner sole trader Danny Lovey believes last week’s news will be the last straw for many packagers.

He says: “I think we will see more than just one or two disappear. SPML and Preferred were two of the main lenders for the packaging market so it is going to be a huge blow.”

But Morris argues that every part of the mortgage market is suffering the same. He says: “We are all in this mess together. It was first a sub-prime problem but this has now spread to every part of the market.”

He says Future Mortgages’ decision to cut maximum loan to values to 80 per cent on its prime mortgage range will have more of an impact on the market than the closure of SPML and Preferred.

“Any other specialist lender could disappear from the market but it would not have as much impact. It will be interesting to see how many lenders follow Future’s move,” he says.

Lehman Brothers says the last date for applications to be received is May 1.

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