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HBOS folds TMB in bid to remove duplicate costs makes 425 jobless
HBOS is to cut 425 jobs and shut down The Mortgage Business, the specialist buy-to-let and self-certified lender owned by the group. Its customers will be transferred to Birmingham Midshires, also owned by HBOS. Intelligent Finance (IF), is to stop offering current accounts, credit cards, personal loans and some mortgage deals from next month.
HBOS also plans to cut its mortgage staff, including IT and product design teams. It is understood that it will also close one of its mortgage processing centres, affecting jobs in Chester, Cardiff and Livingston, Scotland, while IT jobs are to be cut in Edinburgh, Chester and Halifax.
Graham Goddard, of Unite, the union, said: “This is a further blow for jobs in the UK financial services sector being brought about by the credit crunch and changing economic climate. Our priority is to do our best to ensure these losses are dealt with through voluntary redundancy.”
Last month, Britain's biggest home lender reported a sharp drop in first-half profits as a result of the global credit crunch.
The changes at HBOS were targeted at eliminating an overlap between the mortgage brands.
"This is a more effective way of operating the brands and will help remove duplication," Nigel Stockton, head of HBOS Intermediary Mortgages, said, and also said that "Intelligent Finance intended to become a bigger operator in the savings market".
The housing market is experiencing a sharp downturn. After years of easy credit and booming prices, the housing sector has slumped in recent months. Activity has slowed as lenders tighten their criteria for handing over money and house prices have fallen sharply, by up to 20% in some areas.
The changes would not affect HBOS's main mortgage brands - Halifax, Bank of Scotland and Birmingham Midshires, it said.
Existing TMB and IF customers will also not be affected.
HBOS also plans to cut its mortgage staff, including IT and product design teams. It is understood that it will also close one of its mortgage processing centres, affecting jobs in Chester, Cardiff and Livingston, Scotland, while IT jobs are to be cut in Edinburgh, Chester and Halifax.
Graham Goddard, of Unite, the union, said: “This is a further blow for jobs in the UK financial services sector being brought about by the credit crunch and changing economic climate. Our priority is to do our best to ensure these losses are dealt with through voluntary redundancy.”
Last month, Britain's biggest home lender reported a sharp drop in first-half profits as a result of the global credit crunch.
The changes at HBOS were targeted at eliminating an overlap between the mortgage brands.
"This is a more effective way of operating the brands and will help remove duplication," Nigel Stockton, head of HBOS Intermediary Mortgages, said, and also said that "Intelligent Finance intended to become a bigger operator in the savings market".
The housing market is experiencing a sharp downturn. After years of easy credit and booming prices, the housing sector has slumped in recent months. Activity has slowed as lenders tighten their criteria for handing over money and house prices have fallen sharply, by up to 20% in some areas.
The changes would not affect HBOS's main mortgage brands - Halifax, Bank of Scotland and Birmingham Midshires, it said.
Existing TMB and IF customers will also not be affected.
Thu, 14th Aug 2008