First UK Sub-Prime Casualty

Specialist lender Victoria Mortgages has gone into administration as a result of the volatile sub-prime market.

The group, which lends money to people with adverse credit histories as well as the self-employed, said its funding had been removed.

Simon Read, head of business development at Victoria Mortgages, said: "We have gone into administration as of today. It is fair to say our funding line has been removed."

The group is working to find other lenders interested in taking on mortgages it has in its pipeline. The group can no longer advance funds to people who have had loans approved, meaning those purchasing homes will be unable to complete on them.

The vast majority of Victoria's customers will be unaffected by its financial problems because it has sold its existing mortgage liabilities onto banks and other financial institutions.