Would-be lender Portillion has withdrawn its application to the FSA for a banking licence.
Portillion made its application to the FSA to become a mortgage lender in May 2011.
But a spokeswoman for the lender has told Money Marketing sister publication Mortgage Strategy: “Portillion’s board confirms that the application to the FSA for a banking licence has been withdrawn.
“Difficult market conditions continue, however it is the board’s belief that opportunities in the mortgage market remain and all options are being evaluated by the board and investors.”
She says it is too early to comment on the future of the business.
Stephen Knight revealed his plans to launch a lender called Checkmate Mortgages in 2007 which was later rebranded to Portillion in February 2010.
But in February 2011 Knight was forced to step down because of a brain tumour.
Portillion had set an original launch date of January 1 2012 and planned to offer a range of savings products direct and mortgages through intermediaries.
It had secured over £58m in investment from SBI Group of Japan.