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Bank of Scotland’s business development managers have told brokers the bank is “not in the market for commercial deals for the next few weeks”, according to advisers.

In an email received by a number of brokers, commercial business development managers for the HBoS-owned lender rejected a number of commercial applications explaining: “Unfortunately while we are undertaking a review of our policy due to market conditions, we are not in the market for looking at deals for the next few weeks.”

A spokesman for the Bank of Scotland said the lender continued to actively underwrite new corporate banking business and had been involved in a number of significant transactions recently. He said: “Just like any other major bank, however, we have become even more selective about the business we choose to write. This is a matter of straightforward prudence and nothing else.”

However, an industry insider said the bank had moved a number of its commercial lending managers across to become credit balance managers and was turning down deals under the pretext of a “prudent approach”.

He said: “The bank is not looking to lend for the next four to five weeks and it has moved managers across to credit balance as part of this strategy. However, it continues to take on solicitors and those who are part of their recruitment campaign for solicitors’ accounts and their corresponding credit balances. In that respect I am sure it has actively underwritten new business which includes significant transactions.”

Ross Keany, senior media relations manager for the Bank of Scotland, would not comment on its managerial situation, the emails sent by its business development managers or whether the lender was focusing purely on solicitors’ accounts.

Jan Duffy, director of Bournemouth-based Abacus Financial, said Bank of Scotland is one of the few lenders still doing new build flats and it was no surprise it had curbed its commercial lending.

She said: “Lenders do not want to lend at the moment and that is not just the Bank of Scotland. That is everybody yet everyone insists on maintaining this open shop windows ap¬proach and it is just a farce.

“The Bank of Scotland used to offer deals on newbuild flats. This makes it quite unusual so I should imagine it was the first to be looked at if this is the case.

“As a mortgage broker, it is virtually impossible to do your job now and it does not look like it will get any easier.”

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