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Many specialist lenders, or sub-prime versions of mainstream lenders, appeared quickly funded through securitisation markets or US banks. As these lenders do not exist in branch form they are able to withdraw equally quickly.

Many other lenders have effectively withdrawn but done so by simply by pricing themselves out of the market.

Lenders such as Future Mortgages are brands under worldwide umbrella companies, which can survive by refocusing on their other business ventures. Some withdrawals have been the result of sufficient funding resulting in excessive demand.

Umbrella companies, which also have mortgage retail within another brand, are able to close one yet keep enough operation going to ride out the storm and see how the market develops, as First Direct has done, opening again to new customers when they have caught up with its backlog.

While closure of a great many of these lenders may reduce demand for wholesale money, and thus theoretically ease the price, in a healthy market fewer lenders leaves less price competition and therefore fewer affordable choices for consumers.

It is inevitable some will close permanently, disband entirely or tick over on income from existing clients and return, perhaps under a new name or fresh brand, once the market has recovered sufficiently.

Katie Tucker is technical manager for London-based mortgage adviser John Charcol