Simon Stern, director of Prestige has been forced to make the decision because of the credit crunch and the uncertainty in the market.
It has introduced quotas to its remaining brokers and is keen to stress that it is staying in the secured loan market.
Stern says: “We do not have a limitless supply of funds and have therefore tried to ensure we control our volumes to ensure we are lending way into the future. We were the first lender to introduce quotas and these have worked reasonably well and ensured brokers knew where they stood with us without the fear of cases being rejected if funds ran out.
“Although we have funds available, with the arrears position worsening as borrowers are unable to arrange re-mortgage deals and therefore loans are not being redeemed, unless we cut back further on our lending volumes we will be faced with the very real possibility of running out of lending funds, which is not something we wish to do.”
Stern says its priority is to maintain lending throughout 2009.
Prestige is returning paperwork and all cases in the pipeline to brokers it can no longer do business with.
Stern adds: “Please understand that this has been a very difficult decision to take but has been done to ensure that Prestige Finance not only maintains a presence in the market but when the market does eventually improve, is in a strong position to again increase its lending volumes and continue to support brokers in the secured loan market.“