The FSA has confirmed that Victoria Mortgage Funding has been placed in administration and says that up to 381 customers could be affected.
Christine Laverty and Michael McLoughlin of KPMG have been appointed as joint administrators.
The FSA says that the lender represents about 0.064% of the mortgage lending market.
The firm, which is based in London, believes that up to 381 customers who have current mortgage offers may be affected.
GMAC-RFC has offered to review potential completions for home purchase transactions due in the next three days with a view to providing these borrowers with a mortgage loan.
The firm has provided packagers/brokers with relevant case application details to help secure alternative mortgages for remaining customers.