Cobalt Capital, the Knightsbridge-based high net worth mortgage brokers, has gone into administration. The announcement follows much speculation about the state of the firm, which recently insisted it was operating as normal despite the financial crisis and a rumoured management rift.

But director Julian Ingalls attributes the wind-up to these damaging influences.

"It's very sad for all of us who worked to establish Cobalt Capital. Well documented market conditions and some internal politics have taken their toll and we have been left with no alternative but to place the firm into administration,” he said in a statement.

“I'd like to thank all the members of staff who have put up with some incredibly difficult conditions, and the lenders and the introducers who have continued to support us,” he added.

Last week, Mr Ingalls made a call for management to pull together to help the company move forward which, he said, it would continue to do.

"I feel honoured to have worked closely with some real professionals in the mortgage industry, and my thoughts go out to all of those who are struggling to make an honest living against a strong undercurrent of bad news trying to drag people down,” Andrew Montlake, a Cobalt Capital partner, wrote on his blog. 

The firm typically dealt with high level loans for private clients, arranging over £1.5 billion (about $2.1 billion) of lending annually. It operated from offices in Knightsbridge, the City of London and Bristol.