Victoria Mortgages has announced that it has gone into administration today and will not be able to complete outstanding mortgage offers.
In a statement it says that disruption in the capital markets is to blame for its closure.
It says: “Victoria deeply regrets that this has occurred. Victoria will, as rapidly as possible, make available case information to enable you to replace cases. You will be aware that some lenders may be able to make substitute offers very rapidly via their online systems. GMAC-RFC has offered to review potential completions for purchase transaction due in the next three days.”
Victoria withdrew its sub-prime products from the market at the beginning of August due to the fall out from the US sub-prime mortgage crash. It claimed that it was only a temporary withdrawal and that it would re-launch to the market just weeks after. The lender even went as far to say that it would be re-pricing its products by as much as 2.5 per cent when it came back to the market.
Business development manager Simon Read says that it will be issuing an official announcement later this week.