Virgin Money claims its partnership with Macquarie Bank is not under threat, despite Macquarie recently shutting the doors of its mortgage division, Macquarie Securitisation Limited (MSL).
“It is business as usual,” Virgin Money CEO David Wakeley said. “Macquarie will continue to be our funding partner for home loans and will continue to fund Virgin Money Home Loans for new customers.”
Virgin Money is solely funded by Macquarie Bank as part of a joint venture.
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And while Macquarie has conceded that the credit crunch has had an impact on its mortgage business, the bank said its existing relationships will not be affected.
“Since the onset of the credit crunch in August, our volumes have slowed down in line with forecasts,” a Macquarie Bank representative told Mortgage Business.
“We are winding back our mortgage origination services, however we will continue to fund existing contractual agreements and service existing customer requirements.”
Mr Wakeley said Macquarie’s announcement “has no impact on Macquarie’s shareholding in our business”.
He added: “The MSL and Virgin Money Home Loan relationship is unaffected by this announcement”.
