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The Rugeley-based intermediary had come through an extensive period of growth in the early part of this decade to become one of the UK's largest advisory groups, according to administrators Begbies Traynor.

The business had grown swiftly thanks to its focus on adverse lending and by August 2007 the group was placing 90 per cent of its written business in the sub-prime market.

It was the crashing of the wave of success enjoyed by the sub-prime sector that hit this business hard.

The impact of the credit crunch was fairly instant. Black & White had been on course to make a seven figure profit for 2007 prior to the money markets shutting up shop.

Despite a £750,000 cash injection from the group's director Chris Ollerenshaw the company begun winding up as early as November, just before they were visited by the FSA after allegations involving self-cert mortgages.

The company then went into administration in February 2008.

While Black & White was a fairly new name on the mortgage landscape, the company was first established in 1998 under the name Ever 1060 Limited.

The company name was changed to Midlands Finance (Holdings) Limited on 4 January 1999, before it became Black & White Group Limited on 14 June 2002.

While Black & White initially specialised in the secured loan and placement market, in July 2000 the business was expanded to concentrate its efforts on the mortgage, loan and insurance market.

From July 2000 to November 2004 the business expanded dramatically, with more than 350 staff employed, of which 240 were field advisers covering the whole of the UK.

It was when the entire mortgage industry became regulated by the FSA in November 2004 that problems first began to emerge. Prior to November 2005, Black & White relied on new sales leads generated from outbound calling.

The new regulations had an immediate impact on the company's cashflow resulting in a major restructuring.

Part of the restructuring, including the removal of the managing director, became litigious and according to a Begbies Traynor's report caused the company to suffer "management distraction", cost and a loss of a significant part of its sales team. As a result of the restructuring and the new demands placed on it by the FSA regulations, the company made a loss of £1.1m in 2006.

With a new managing director in place, Black & White was on target to made a seven digit profit in 2007 before the credit crunch hit.

Mal McConechy, mortgage director of Wiltshire-based mortgage network Home of Choice, said while the FSA visit to Black & White may have turned up "other things" he did not believe the company was looking to blame the watchdog for its problems.

He said: "Black & White was suffering very early on as it relied heavily on the sub-prime market. We are in a situation just now where there is continued fragility in the market and what is frightening is the spread in which this market is taking them down.

"Black & White went to its cupboard and there was nothing left. £750,000 is a lot of money even if you are a highly paid executive and that is a lot to commit out of your own pocket and a lot of money to lose. They certainly did all that they could to keep the company afloat."

Ronan Marrion, a mortgage adviser for Truro-based IFA Worldwide Financial Planning, said: "It is fairly clear to see that, like other mortgage adviser business, there was quite a bit of upheaval when the new regulation came into play and despite any internal company problems, any firm who focused their business on the sub-prime market was really going to struggle in recent months.

"Black & White obviously tried its best to keep moving forward with the chairman even putting a sizeable amount of money into the company but with fragile internal structures and a decreasing level of business it was always going to be an uphill struggle. I am sure the FSA visit was more the final nail in the coffin than anything else."