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HMRC seeks winding up of Mortgage Times

HM Revenue & Customs has filed a winding up petition against Mortgage Times Group, which cancelled its FSA permission before Christmas and emailed appointed representatives to say it was ceasing trading.

Speaking to Money Marketing on December 21, a staff member who did not wish to be named revealed that employees were called into a meeting that day and told the network was about to be placed into administration.

HMRC’s petition to wind up the network is due to be heard in the High Court of Justice Chancery division on January 13, and if it is successful Mortgage Times will be placed into compulsory.

In an email sent to appointed representatives by Mortgage Times on December 21 and seen by Money Marketing, the group’s directors say the company has ceased trading and therefore advisers are no longer authorised to conduct regulated activities.

The email said: “As appointed representatives of The Mortgage Times Group Limited you are no longer permitted to conduct regulated activities under our FSA number 303007 as from today’s date.”

It added: “We have been vigorously attempting to secure investment into the business from strategic business partners to allow us to continue to trade solvently in to 2010.

“We are extremely saddened that at the 11th hour a potential major investor has made the decision not to proceed and we have been left with no alternative but to cease trading.”
The FSA has confirmed that the network has requested to withdraw its permission to carry out regulated activities.

The firm’s auditors raised concerns over the group’s future in November after it posted an operating loss of £1.3m for 2008.

The auditors said there was “a material uncertainty which may cast significant doubt about the group’s ability to continue as a going concern”.

Over the past year, Money Marketing has heard from a number of ARs who say they are owed commission by the firm.

In May this year Money Marketing revealed that one AR had a county court judgement granted against the network for unpaid commission.

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Comments

There are 5 comments at the moment, we would love to hear your opinion too.

  1. Winding up petitions now seem to be the norm with HMRC, they have now put there foot down with outstanding amounts due. The most easy option is a winding up petition but if Mortgage Times have made a statement saying they are no longer trading then the company will be wond up for sure. The courts will issue a winding up order on the day.

    Moe Nawaz

  2. Yes, the era of “no questions asked” mortgages is finally coming to an end RIP. House prices have a long way to fall before people can genuinely obtain a mortgage on them!
    RIP the Brown bubble.

  3. So the FSA stopped them trading on 21 December and in late November HMRC issued proceedings to wind the company up….

    Does anyone still believe the directors when they said they stopped trading because a potential purchaser decided not to buy the company.

    I know they concluded at least one deal on 21 December 2009 and took fees in the final week. That is out of order. I hope the FSA take action.

  4. This is one of the most disgraceful cases of mismanagment I have seen. The directors should be held to account. The FSA should give reasons for their inaction. The Serious Fraud Office should investigate.

  5. I hope the judges call for a proper investigation

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