In a note to brokers, it said it would underwrite and evaluate applications already received and withdraw products by the end of today.
It said that there was “increasing demand” for its specialist mortgage offering and it was “receiving a continuously high volume of mortgage applications,”
According to Building Societies Association data, Dudley is the 26th largest mutual in the UK with £524m in assets as of March this year.
The firm offers a wide range of products, including lending in and into retirement, self-employed, expat, holiday lets and shared ownership.
The mutual’s criteria also includes no minimum income across its product range, multiple income streams are accepted, gifted deposits are permitted and equity as well as capital raising. It will also accept joint borrower sole proprietor with a minimum of 20 per cent.
Kieron Blackburn, commercial director at Dudley Building Society said: “We regard this pause on new business as a temporary measure. As soon as we’re confident that we can return to providing the service that our partners expect we’ll return to the market.”
Several lenders have temporarily paused new business to maintain service levels, including Gatehouse Bank, Suffolk Building Society, Saffron Building Society and Cambridge Building Society.
Coventry Building Society had temporarily paused new business but reintroduced it earlier this month.
Brokers have told this publication they expect more lenders to follow suit and said pausing business to get service levels in order is better than pulling products and increasing rates frequently.
