Beacon Homeloans offered mortgages to UK house buyers. As soon as the mortgages completed they were sold to Redstone. Both were funded by a German Bank. Redstone bundled up the mortgages and offered them to investors as Residential Mortgage Backed Securities (RMBS). Beacon used “B Legal” to act as conveyancers. Its staff operated from a bank of desks next to Beacon’s Underwriting Team.Having seen loans turn sour Redstone is now suing B Legal saying it cut corners. Beacon used to boast they were the UKs 11th biggest Lender. Not any longer! A salutary lesson in the excesses that led up to the Credit Crunch you may think and we wouldn’t disagree. However, the problem is that without a return to Securitisation the Housing Market will be starved of mortgage funding. With the latest stats showing traditional Banks lending less on Property and more to sectors such as Manufacturing Policy Makers have their work cut out to make RMBS attractive once again but this time without being toxic.
Andrew oversees the Firm’s Quality Systems and is committed to making sure that our client’s receive the very best customer care and attention along with the best marketing and legal advice in the area.