In November, Commercial First completed the only public securitisation since the credit crisis began but despite this it has been forced to put a hold on new originations.
Stephen Johnson, the company’s sales and marketing di-rector, said: “The business had been given positive indications that warehouse lines and working capital funding would be made available.
“We also re-ceived an initial offer to buy the firm recently.
“But certain events in the fi-nancial markets including the sale of Bear Stearns meant that both the offer for the business and the additional funding had to be withdrawn.
“As a consequence of these de-velopments, the business had no alternative but to suspend its originations.
He added: “Our management team is in dialogue with the company’s funding partners to ex-plore some possible solutions for pipeline business.”
Commercial First made a pro-fit of some £13m last year and the firm is on target to make more than £20m this year, with a balance sheet of £1.6bn in mortgage assets at an average LTV of 68% and a margin of 4%.
Johnson said: “It is abundantly clear that the credit market has failed.”