E-crisis claims brokerage

The bursting of the dot.com bubble claimed another casualty yesterday when the first online mortgage broker to set up in Britain closed after failing to secure funding it needed.

Independent Mortgage Brokers, which was founded in 1997, officially ceased trading yesterday. The Kent-based firm was started by managing director Anthony Webb in his spare bedroom and by December last year had grown into a company valued at more than £14m and employing 25 staff.

A spokesman said it had made approaches to venture capitalists and investment houses but the funding sought was not forthcoming.

The company had been operating profitably since 1997 and in terms of volume of sales it was "up there with the big boys", he said. Earlier this year it was arranging close to £5m worth of loans a month.

However, it was looking to raise funds to expand so it could move to larger premises and take on more staff. It had also been trying to secure a partnership with a new financial services provider. When this failed to materialise, the cost of delay proved unsustainable and Mr Webb made the decision to wind up the company.

The spokesman blamed the internet climate - the downturn in investors' sentiment which has seen tech stock prices plummet. He also highlighted the flood of online mortgage brokers on to the market recently.

The British launch in January of US-based E-Loan, the self-proclaimed global market leader in online mortgages, was swiftly followed by NetMortgage (the online service of broker Savills Private Finance), Creditweb and many others.