Salt Commercial suspends new lending

  • Story by: David Pawsey
  • Magazine: MortgageAdviser
  • Published Friday , May 02, 2008

Salt Commercial, the commercial lending arm of Derbyshire Building Society, has suspended new lending.

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Salt said lending levels in the first part of 2008 had risen dramatically and the lender felt it was now time for consolidation.

Adam Tyler, chief executive of the National Association of Commercial Finance Brokers (NACFB), said: "The NACFB have enjoyed a close relationship with Salt Commercial since their inception and they had become very well placed by our members.

"We would like to take this opportunity to wish them all the best and that we hope to see them return to the market soon. However, obviously my main concern is with the impact this decision will have on members’ business. I have been reassured that established pipeline business will be honoured.

"As in previous instances with other lenders, Salt approached the NACFB immediately and sought our assistance in redirecting business to alternative sources with the minimum of delay and inconvenience to members.

"Therefore, we are looking to provide immediate support to all our members, some of you who will be affected greatly by this news. We are also working with our patrons once again to compile a list of those lenders who have the capacity still to do business in this sector."