"When you look at the number of new entrants to the market and niche areas being serviced, this is bound to happen once or twice.
"Not everybody can make a success of what they are doing, as in the case of Secure Trust. Coming into that market is not easy so you have got to stand out."
Mr Hollingworth added: "With more lenders now looking to make their mark it does raise the question of whether the growth in lender numbers is hitting the high point and whether there could even be some contraction if lenders find it harder to find their niche."
Mr McGerrigan, however, suggested more effort is made to ensure the continued success of smaller, niche lenders.
He said: "It is important throughout this that every effort is made to ensure smaller niche lenders continue to increase their market share for the long term good of borrowers.
"Short term uncertainty aside the UK mortgage market is incredibly robust and I expect it to bounce back strongly once clarity returns."
Jenny Turton is a freelance reporter for FTAdviser