March 2009 will be the earliest around 5,000 investors will be able to withdraw their money from the fund.

Interest may be less than expected, but will still be paid.

Trust spokesperson Don McBeath said an unprecedented level of withdrawal requests from investors worried about the health of financial markets forced the trust’s hand, as people withdrew money faster than loans were paid back.

McBeath put the rapid rate of withdrawals down to a lack of confidence in the financial market.

All mortgage holders were required by the trust to repay loans as they matured. New loan applications wouldn’t be considered until investor confidence returned to the markets.

The fund is imposing a suspension period for withdrawals as opposed to closing, said McBeath, and they envisaged the fund continuing when greater certainty crept back into financial markets.

"Our objective is to work through the suspension period and to generate sufficient cash to meet the withdrawal requests,” Business Day reported McBeath as saying.

Quarterly interest due on October 1st will still be paid, but likely at a lower rate than previously - the trust paid 9% last quarter.