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Glasgow-based Money­quest (uk), Chief Executive Paul Gratton Shut Down The Firm On Friday

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IMHO these guys were as 'good' as it gets in the mortgage broker industry, if they can't make it work (and particular this guy, Paul Gratton with his track record at Egg) in this climate then it's so bent out of shape most brokers should simply give up the job....

Just five months after he bought Glasgow-based Money­Quest (UK), chief executive Paul Gratton shut down the firm on Friday and transferred its staff and customers to new firm Money­Quest Mortgage Brokers. The smaller, more streamlined firm will be an appointed representative of Legal & General Partnership Services.

Speaking exclusively to Mortgage Strategy, Gratton says that while the decision was difficult it was vital to safeguard the brokerage’s long-term future. When he took over MoneyQuest in March, Gratton was able to turn the loss-making business around quickly, leaving it in profit for April. But the following month transaction numbers plummeted by a whopping 40%.

Gratton says: “In May dual pricing was at its peak. While I don’t think clients flooded into branches, it did mean that they sat on their hands and stayed on their SVRs.”

He started talking to insolvency practitioners three weeks ago to gauge the firm’s options.

http://www.mortgagestrategy.co.uk/cgi-bin/...h=401&f=402

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Big question mark over "he is oving the business and some staff to his other business."

Is there more to this than meets the eye?

Their 'takeover' (of sorts) took close on a year, only two years back certain investors were looking at it with a price tage of circa 100mil :blink: (I kid you not). The four founder directors were looking at a lottery win and some. Not sure how the ultimate sale deal was eventually structured, or if the new owners were tied into an agreement pre mortgage crash, wouldn't have thought so, he appears to be far too cute. Very impressive pre mortgage crash operation, they were the best at buying in leads and being on them like a rash, their conversion rate on FTB business was a stunning 25% :o Hard to describe how much the industry has changed in the past 8 months, you can buy in FTB leads for a couple of quid, can't do anything with them and the overall quality of all mortgage leads is beyond 5hite. Lots of brokers shifted to re-mortgage leads and paid a premium for these over the past six months, literally chasing the deals and the money down a dead end where it is now running on empty, even these are poor earners now as so many proc fees have been slashed. The collective industry won't own up to it but it's still in year 2007 mode chasing 1977 mortgage business, and that wasn't a vintage year...

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Their 'takeover' (of sorts) took close on a year, only two years back certain investors were looking at it with a price tage of circa 100mil :blink: (I kid you not). The four founder directors were looking at a lottery win and some. Not sure how the ultimate sale deal was eventually structured, or if the new owners were tied into an agreement pre mortgage crash, wouldn't have thought so, he appears to be far too cute. Very impressive pre mortgage crash operation, they were the best at buying in leads and being on them like a rash, their conversion rate on FTB business was a stunning 25% :o Hard to describe how much the industry has changed in the past 8 months, you can buy in FTB leads for a couple of quid, can't do anything with them and the overall quality of all mortgage leads is beyond 5hite. Lots of brokers shifted to re-mortgage leads and paid a premium for these over the past six months, literally chasing the deals and the money down a dead end where it is now running on empty, even these are poor earners now as so many proc fees have been slashed. The collective industry won't own up to it but it's still in year 2007 mode chasing 1977 mortgage business, and that wasn't a vintage year...

So not good then?

I think you can take CL's knowledge and analysis of the broker business to the bank - actually probably better than anything to do with banks. :lol:

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Guest DissipatedYouthIsValuable
Big question mark over "he is oving the business and some staff to his other business."

Is there more to this than meets the eye?

Aye.

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  • 399 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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