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The debate about the future of mortgage packaging in the UK has centred on the recent activity in the specialist market, suggesting packagers will automatically suffer because their specialist knowledge will no longer be needed.

There has also been speculation that those lenders that are no longer chasing volume will not want to meet the costs of dealing with third parties, such as packagers, and will instead choose to go direct.

This speculation is not helpful, especially for those hard working people in our industry who are trying to do their best by both their clients and their industry partners.

Of course, the market is facing a tough time and there may be more casualties but we should not ignore those packagers who are working harder than ever to ensure their business models survive.

There are examples of packagers in the market continuing to perform well by sticking to a sound business plan. It is heartening to see examples of UK packagers, not just surviving but thriving in the present climate.

One packager that has performed particularly well in the last few years is The Mortgage Service. Established seven years ago, it has grown into one of the largest packagers in the country packaging more than £400m worth of applications in 2007 and its business has increased by 18 per cent in the first three months of 2008.

Mark Allen, managing director of The Mortgage Service, said the company enjoys a strong business model, which has given it a sustainable competitive advantage and he continues to see the industry in a positive light.

Mr Allen said: "We have been largely unaffected by the credit crunch simply because we have stuck to what we do best. We should never lose sight of the fact the UK's mortgage market is huge and we are living proof that mortgage packagers can still survive even in these challenging conditions."

In tough times it is a company's sound culture and the ongoing motivation of the packager's workforce that will stand them in good stead.

In fact, growth in business volumes this year has resulted in The Mortgage Service recruiting extra staff numbers rather than make redundancies, which are unfortunately so common at present.

As with any industry going through a challenging period, a sound business model is essential, with a firm focus not just on survival, as so many packagers currently are, but on a clear strategy that gives you a competitive advantage over your rivals.

Exclusive products and larger procuration fees are all very well, but it is the relationships that you have formed that will stand you in good stead when times are tougher. All parties will continue to support you if you provide them with a great service.

The importance of relationships is also vital when considering partnerships. It is a good idea that you ensure you are continuing to deal with those lenders who are willing to support you through both good times and bad. Do you have lenders that you are partnering with that are vocal in their support of packagers? It is these quality partnerships that will help the most.

Another way to ensure packagers continue to thrive as much as possible is to look beyond the mortgage industry when seeking out new ideas. Some of the most successful companies in the UK are those that look at other business models in alternative industries to obtain ideas.

What is also necessary for the mortgage packaging community is to consider how they are likely to operate on reduced margins and how their business model will be able to cope. The speed at which this can be achieved is vital as the market looks set to be volatile for a while yet.

Packagers also need to ensure they continue to keep their houses in order and that they are still operating in the spirit of treating customers fairly. Ensuring that record-keeping is kept up-to-date is essential when times are tough and the FSA is keeping an even closer eye on the industry.

Nobody is denying that we are experiencing an uncertain and challenging time but it is those packagers that look at opportunities outside of their usual comfort zone that will survive and will come back even stronger as a result when market conditions change for the better.