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1,000 More jobs to go as crunch gets worse

Nearly 1,000 UK mortgage and banking jobs are being cut after HSBC and Bradford & Bingley streamlined their operations in reaction to the credit crunch.

HSBC revealed 1,100 global redundancies including 500 staff in the UK, while B&B is to axe 370 employees – the most redundancies made by a financial firm outside London since the beginning of the crunch in August 2008.

The cuts will affect staff at B&B’s Borehamwood mortgage processing plant but the firm says some employees may relocate to its facility in Bingley, south Yorkshire.

Meanwhile, 20 Mortgage Express BDMs have been made redundant in addition to the axing of all B&B’s branch-based advisers.

B&B will now begin a review of staffing at its head office and central services department.

A spokeswoman for B&B says: “This meets the immediate needs of the business and provides a foundation for future growth.”

The buy-to-let lender says the redundancies are the first stage of a review that will end in November.

Earlier in the week B&B revealed that it will terminate its loan book deal with GMAC-RFC that was signed in March. It has also cut the value of the original deal from £1.75bn to £750m.

At the time of writing B&B’s share price was 20p, having fallen to an all-time low of 16p on Friday.


Sins & sinners

As Mortgage Strategy celebrates its birthday in what is shaping up to be an almost unprecedented year in economic history, we thought we’d use some clever number play to bring you, in our seventh year, the seven deadly sins of the mortgage market – and nobody comes away innocent.

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President George W. Bush’s $700bn rescue plan to kick start the American economy has been passed by the Senate.

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The traditional treasury function of balancing savings books with loans has all but gone from banks and building societies. However, the events of the past 12 months have led some lenders to look again at whether there is a role for increasing the savings side of their balance sheets to gain more control of their mortgage books.


Case study: administration — implementing a management log

Our client is a leading video game and publishing company best known for its console role-playing game franchises. The client provides a number of benefits, at varying levels and cost that attract a P11d liability. With the absence of a management log to track data for benefit movements, enormous administrative and therefore cost implications were occurring each year just to comply with P11d reporting requirements.


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