Base Commercial Mortgages is withdrawing its adverse lending facilities immediately.
The company will continue to accept and underwrite applications from borrowers with a clean credit history and will consider proposals with historical adverse credit histories, which can be fully explained.
All offers which have already been received will be honoured, but the company will no longer accept new applications with existing adverse credit records.
Mark Stephens, chief executive at Base, says: “Our decision to stop accepting adverse credit applications has been driven by the current economic conditions and the need to keep a tight control over credit quality.
“We have good funding lines in place and we want to do everything possible to maintain our credit quality and ensure our mortgage assets remain an attractive proposition for potential investors.
“We cannot ignore developments taking place elsewhere in the commercial mortgage market and we do not want to put Base in a position where it is being selected as a lender of last resort.”