Unity Homeloans is also backed by South-African firm Investec.
In an email to packagers, the non-conforming lender says: “Due to current adverse movements in the capital markets, our current product range is closed to all new business with immediate effect.”
Unity says that all existing products have now been withdrawn and is unable to accept any new business.
It adds: “We are extremely sorry for any inconvenience this may cause you. We shall endeavour to release a new product range in the coming weeks.”
This follows on just moments after Infinity Mortgages also put a note on its website stating that it will be withdrawing its entire sub-prime mortgage range from the market on August 17.