Sourcing system provider Mortgage27 will enter into liquidation after parent company Twenty7Tec decided to stop investing in the subsidiary.
Twenty7Tec Group managing director James Tucker will attend a creditors meeting in Bournemouth tomorrow before a liquidator is appointed to officially wind up the company.
He said the business-to-consumer market is no longer profitable with strong competition from Mortgage Brain and Trigold so the group will focus on intermediary back office systems instead.
He said an employment tribunal awarded against Mortgage27 placed a significant financial burden on the company. This will be wiped off once the liquidation is completed.
The decision will have no impact on the group’s other companies, MortgageSourceTec Ltd, MortgageApplyTec Ltd and LoanSource Ltd.
Tucker said: “We want to focus on back office systems rather than maintaining two different systems.
“At group level we determined some time ago that the B2C market was no longer profitable and we would not continue to invest to support Mortgage27 Ltd.
“Further to that, an employment tribunal award against Mortgage27 Ltd related to an ex-employee of Client Data Systems Group placed an additional financial burden upon the company that we were not prepared to support.
“We felt that Mortgage27 Ltd would trade insolvently if we allowed it to continue and as such we placed it into liquidation.”
Twenty7Tec Group’s other major products are LoanSource for comparing second charge products with mortgages, MortgageApply which allows intermediaries to tie into lenders’ decision making engines and SourceInsight, a portal allowing lenders to identify trends in intermediary and direct-to-consumer sourcing.