So apparently the global mortgage crisis is for real.
British subprime mortgage lender Victoria Mortgage Funding has announced that it has ceased funding loans and halted all production.
The mortgage lender primarily worked with borrowers with poor credit and those who were self-employed, but had previously withdrawn a number of its products following recent market turbulence.
Simon Read, head of business development at Victoria Mortgages, said: “We have gone into administration as of today. It is fair to say our funding line has been removed.”
The lender is currently looking for other banks to take over loans currently in its pipeline, and said it would not be able to complete outstanding mortgage applications.
GMAC-RFC, the 10th largest lender in the United Kingdom has pledged to step in and “help” borrowers.
A spokesman said, “I can confirm that GMAC-RFC are happy to help with a number of borrowers who have purchase transactions proceeding, that otherwise would have been left unable to complete on their new homes.”
Victoria Mortgage withdrew all its non-conforming products on August 3rd, and later announced that it would raise interest rates by 2.5%.
It is believed that one of their two remaining credit lines was funded by UBS.
Just days ago specialty lender Kensington Mortgages also said it was temporarily withdrawing from the mortgage market.
See the latest list of closed mortgage companies.