Ray Boulger from John Charcol said that firms are concerned about running into financial difficulty following the crisis in the markets.
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In response, claimed Mr Boulger, some companies have increased rates on their sub-prime deals so that few people sign up to them.
"They just do not know at what price they will be able to fund these mortgages and they even don't know if they will be able to fund them," he said on Channel Four News.
"The safe thing to do until they know that is to shut up shop but if they admit they have got no product, that is very damaging.
"Much better to price your product at a level that means you get very little business but at least what you do get you are confident you will make a profit on," added Mr Boulger.
It is bad news for anyone looking to make a quick property sale as it means that fewer buyers are entering the market.
Anyone who is moving abroad or is looking to relocate could find themselves unable to sell their property.
