Base Commercial Mortgages is no longer accepting broker registrations.
The lender says the decision has been made following a rapid increase in the number of new business enquiries being received, resulting from competitors withdrawing products and services from the commercial mortgage market.
Base will continue to accept applications from brokers who are already registered but will not allow new brokers to register, with immediate effect.
Mark Stephens, chief executive at Base, says: “Unfortunately the recent reduction in the availability of mortgage products in the commercial finance market has resulted in Base being inundated with new business enquiries. We had to act decisively or run the risk of being overwhelmed by new business.
“We have good funding lines in place which will enable us to continue lending for the foreseeable future, provided we are prudent with both the quantity and quality of business we write.”
Stephens says it will continue to monitor new business volumes carefully and may have to review existing distribution arrangements if today’s announcement fails to stem the flow of new business enquiries.
He adds: “These are unprecedented times and all lenders and intermediaries are having to make decisions which were unthinkable just a few months ago. Unfortunately, we do not see any signs of an impending change in fortunes, until economic conditions improve and liquidity returns to the capital markets once again.”