First victim of credit crunch in UK

The credit crisis has claimed its first scalp in Britain with subprime specialist Victoria Mortgages going into administration. The lender is one of the smaller players in the UK market and was dependent on wholesale markets for funding but the lack of liquidity there has pushed up the cost of borrowing for lenders. Subprime mortgages in Britain account for only 8 per cent of the market compared with 20 per cent in the US.