Egg, the online banking brand owned by Citigroup, has pulled out of the UK mortgage market from today.
All new lending will be suspended until further notice owning to market conditions, according to Egg, but existing customers will be unaffected.
Egg represents less than 1% of the UK mortgage market as a whole, and specialised in offset and flexible mortgages.
Citigroup has already disbanded its Future Mortgages brand in the UK after the firm reported huge writedowns from the US sub-prime mortgage crisis.
The news will further limit the options available to borrowers, many of whom are struggling to purchase homes or refinance their properties.
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