The lender said it had “temporarily withdrawn” from lending, following a successful year in which
its targets had been met.

A spokesperson for the lender explained: “Withdrawing from the market at this time will ensure that Saffron’s lending portfolio remains balanced and within our lending strategy. This careful portfolio management is key to retaining Saffron’s strong capital position and is therefore in the best interests of our members.”

The building society said it would “review its options” in 2010. The news comes less than two weeks after Newcastle Building Society withdrew its equity release advice service (“Newcastle quits equity release”, mortgagesolutions-online.com, 21/09/09).

Equity release adviser In Retirement Services has also entered into administration, while Coventry Building Society has suspended its product range.

Dean Mirfin, group director at Key Retirement Solutions, said the lender may have pulled out of the market because of fears that it could be swamped with business as a result of other lenders pulling out.

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He explained: “They may have not been able to cope with the business which was left to them or they could have felt they were successful to a certain level. Building societies also have different concerns at the moment in terms of funding which would force them to carefully consider their future. I hope they will come back though and it may just be temporary.”