Staff at Beacon Homeloans have been placed into consultation.
Clive Wilson, sales director at Beacon Homeloans, says it has placed an undisclosed number of staff in consultation as it reviews the business.
He says: “We’re still deciding the future of the business and looking at our options. We are being realistic about our position in the market.
“We are continuing to have talks with potential funders and we have been doing so since the beginning of the year, but the market is difficult at the moment.
“There have been a few new lenders that have launched recently which is encouraging, but its still hard to secure a traditional funding facility.”
Beacon Homeloans ceased new lending in November 2009 as it awaited new funding.
In 2009 it was estimated that based on sales volumes Beacon Homeloans was the UK’s 11th largest lender.