Signs of recovery emerge

Friday, January 18, 2008

The UK mortgage market saw some positive signs recently, including the purchase of Money Partners by US investment firm Goldman Sachs from Investec.

Goldman Sachs has been a keen player during the credit crisis and has emerged a clear winner from the downturn in the sub prime markets, unlike many of its competitors.

The purchase of Money Partners is a clear sign that Goldman Sachs can see value in the UK mortgage market. The market has been suffering from a lack of confidence rather than the issues of liquidity in the US sector.

Money Partners now has a high powered owner who can help it through these turbulent times. It also gives brokers confidence that such a major player has pledged commitment to the sector.

There was also news last week that John Charcoal has put itself up for sale. This demonstrates that they see value in their business regardless of market conditions.

While some mortgage intermediaries see a bleak outlook with business volumes down, some players outside of the industry see investment opportunity and value.

Hopefully these two stories provide some signals that conditions may be improving after five months of doom and gloom.

If you have any questions on this story or others like it, please feel free to contact Solution Mortgages on 0845 123 1260