But its parent group County Mortgage Services says the firm remains well capitalised and will continue to expand into other markets.
It stresses that it will honour all pipeline business and that brokers yet to have receipt of proc fees will be paid.
David Wylie, chairman of c2 and County Mortgage Services, says that the firm entered the market downturn 12 months in a strong financial position and this has been maintained.
But with the market unlikely to return to normal until 2011, it’s taken the strategic decision to suspend its day to day business as a mortgage packager for the foreseeable future.
Wylie says: “The company has acted decisively to preserve the interests of customers, employees and shareholders.
“By preserving the company’s infrastructure, databanks and capital we ensure our ability to aggressively re-enter this sector of the market when conditions improve and when meaningful levels of mortgage lending become available once again.”