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Allan Graham, joint administrator for KPMG, told Mortgage Adviser Edeus would continue to trade while they sought a going concern sale.

He said: "Edeus has successfully transformed its business model to focus on credit assessment and collections work and has won contracts with several major companies. However, the conditions in the housing and financial markets have led to the directors appointing administrators.

"Over the next few days we will be evaluating the business as we work towards securing a going concern sale."

KPMG said all customers who are currently on the Edeus mortgage book will be unaffected by the announcement and their loans will continue to be serviced as normal.

Edeus launched into the mortgage market in September 2006 led by former HBoS employees Michael Bolton and Alan Cleary.

In May the lender, which was heavily reliant on the securitisation markets, announced it was closing its mortgage origination business.

Shortly after it launched an asset quality assessment service.

At the end of June, Edeus launched a "golden goodbye" offering selected borrowers attractive incentives to redeem their existing mortgage early.