Capital One has confirmed that it is closing its Homeowner Loans operation with around 230 redundancies.
Capital One Homeowner Loans, which is based in Macclesfield in Cheshire, is a licensed credit broker owned by the loan, mortgage and credit card provider.
Sanjiv Yajnik, principal managing director of Capital One, says: “While a difficult decision, it is based upon the strategic fit of our Homeowner Loans business with Capital One’s future direction in the UK.
“Capital One remains committed to building its business here in the UK and we will continue to offer innovative and market leading products to our UK customers.”
The operation will continue for several months in order to ensure the effective and fair transition of customers.
Capital One says approximately 230 staff members will be impacted by the decision, although industry sources say the number is more likely to reach 500.
Yajnik adds Capital One has an absolute commitment to treating all of these staff with dignity and respect and all employees will receive support throughout the coming months.
Steve Walker, director of Promise Finance, says: “It’s a real shame that lenders who buy brokers aren’t able to make it work.
“Broker businesses are entrepreneurial and as such will remain compliant without being over the top. However, large corporates tend to be over-cautious.
“When you roll that into a previously entrepreneurial business it’s a recipe for disaster.”