Second charge master broker firm V Loans has said it will be closing down because of the Mortgage Credit Directive.
The company said the implementation of the MCD earlier this year which has seen the second charge market go through a “significant transition”.
Marie Grundy managing director of V Loans said: “Whilst clearly we are saddened that our time at V Loans has come to an end, both Dave Pinnington and I are very proud to have served our loyal intermediary partners over the last nine years, during which we have developed excellent working relationships with an array of leading intermediary firms, networks and lending partners to offer high quality advisory and packaging services within the specialist lending market.
“We would like to thank all our partners and our staff, who have provided us with immense support over the years, and wish them all the best with their future endeavours.”
In a statement V Loans said it would be working closely with its customers, introducers and lending partners to allow a smooth closedown of the business.
In place since 21 March, the new EU-wide rules brought second and subsequent charge loans under the same regulatory regime, with the same advice process for both.
This meant to remain independent brokers now need to include second-charge in their scope of service.
V Loans, which was acquired by Key Retirement Group in October 2014, launched an advisory service back in January to help those not wishing to take on responsibility for advising on second charge.
There is not currently a timescale for when the business will close down.