ADV2 the newly launched second-charge arm of Morgan Stanley has confirmed this morning that they are going to pull their products from the market.
The range, which has been available for the last eight months through a select number of brokers including Loans Etc and Enterprise Finance will now cease. ADV2 also had agreements in place with Norton Finance, Black and White and Portfield Financial, who were due to start placing business this month.
Keith Dearling, managing director of Advantage, says: "ADV2 was a product range that sat within the Advantage product range and was launched as a pilot with limited distribution." Due to current market conditions we have decided not to continue it."
The news has surprised many in the secured loan industry as a statement made last week from the lender stated that ADV2 was determined to become an established player in the secured loan market.
Tom Nelson, Head of secured lending at Zen Finance says "this is another blow to consumers, especially those with adverse credit or little equity in their property. These people will find their ability to secure finance much reduced, as ADV2 are the third sub prime lender to pull out of the market as a result of the current problems lenders have in securing funding for their product lines. In addition to the market withdrawals other lenders are beginning to tighten their lending criteria, which means fewer people will be able to access finance over the coming months, until market confidence returns. Customers looking for a secured loan should contact a broker, like Zen Finance, who will be able to source the right product from them from their panel of active lenders."