The specialist lender, which dealt predominantly through packagers, admitted it could no longer secure funding in the credit markets, therefore leaving it unable to honour pipeline business.
In a short statement, Simon Read, head of business development at Victoria Mortgages, said: “We have gone into administration. It is fair to say our funding line has been removed.”
However, speculation has already begun over the future of the firm, with one unnamed source telling Mortgage Introducer that at least two firms were considering a bid for the company.
Eddie Smith, managing director of Professional Mortgage Packager Alliance, believed situations like Victoria’s could present opportunities for potential lenders.
“I’m sure someone with an intermediary arm will be able, if they wanted, to pick up a business and there are quite a few lenders with the common sense to do so. If they haven’t got a broker arm and they have got a balance sheet, there are some good businesses out there so they could pick up some bargain distribution.”
However, Linda Will, managing director of Accord Mortgages, said:
“A big lender looking for a broker arm would want a prime business as the market is much bigger. The only people who would look at this would be someone who wants to enter that market and has the funding in place.”
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