Liza Campion, director at AMPD (pictured), said that the not-for-profit organisation had “no option” but to close, given the lack of appetite to lend and lenders cutting back financial support.

Campion said: “It is sad and ironic, because in recent weeks we have seen volumes like we had in 2007.

“The specialist market is still very much there and AMPD going should not reflect badly on the market.”

She said that AMPD had managed to survive through the financial crisis owing to its not-for-profit stance and the strength of its membership, but the money it does need to run has been increasingly restricted as lenders pull back.

Campion said AMPD has struggled recently to add significant value to its members and felt it was right to close and allow shareholders to focus more closely on their individual businesses.

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Campion said: “I genuinely believe specialist packaging and distributing does add real value to lenders so there is a future for it. Unfortunately, the AMPD model works on a mass market basis and is just not right for a smaller industry.”

She added: “The packager market has diversified and can improve the quality of business being submitted.

“With AMPD leaving, there may be a gap for a specialist distribution alliance to come in. The problem will be financing it.”

Since it was established in 2006, AMPD has completed £8bn of mortgages and at its close had nine members.