Beacon Homeloans has placed its staff into consultation as it looks to secure new funding.
The lender announced its decision to cease new lending in an email sent to its packager partners in November 2009.
The consultation period is indefinite and it is not clear how many staff are affected.
Beacon Homeloans sales director Clive Wilson says he is optimistic the lender can secure new funding.
He says: “We had to put a number of staff under consultation while we seek new funding arrangements.
“You have to look at your business as a whole and make these difficult decisions. We are still confident we can secure funding. But it is difficult in this market – no lender has managed to secure a traditional funding facility.
On Monday mortgage packager Savills Lending Solutions put all of its staff into consultation.