Money Quest UK calls in administrators

Published on Saturday 26 July 2008 16:48

THE credit crunch has claimed another victim in the Scottish financial services industry, with mortgage advice firm Money Quest UK being put into administration.

Reports last week said the firm had closed its Edinburgh office, but was retaining its Glasgow head office with a reduced head count.

However, a statement from Money Quest UK, which employed 124 people, confirmed it has gone into administration following deteriorating market conditions in May and June.

Chief executive Paul Gratton has now set up a new firm in Glasgow called Money Quest Mortgage Brokers, which has bought MQ UK's customer base and liabilities from the administrators, Mazars.

Gratton is currently in a 30-day consultation with MQ UK employees and hopes to retain about two-thirds of them for the new venture.

MQ UK, which provided telephone mortgage advice, was only acquired by an investment consortium led by Gratton, former chief executive of Egg online bank, in March.

Gratton said: "As the market deteriorated further in May and again June, we felt we had no option other than to try and secure some of the business and protect jobs."