Loans.co.uk Closure To Result In 276 Redundancies

Mon, 17 Nov 2008

Loans.co.uk, the second charge mortgage intermediary arm of the Bank of America, has confirmed it is to close its existing business, resulting in the loss of 276 UK jobs .

In a statement released last week, the company said it could no longer operate in the current economic climate as the third party loans it relies on were in danger of drying up. A number of other factors were also cited for the closure of its UK offices.

The statement read: "A number of factors have led to this difficult decision. As a loan broker Loans.co.uk relies on third party providers to provide loans to its customers."

"A number of key partners have tightened lending criteria or are unable to accept new business . At the same time, house prices have been declining, making it more difficult for customers to fit within lenders’ (tighter) loan-to-value criteria."

It added: "Looking forward the company expects house prices will continue to decline and lenders will continue to be cautious"

"The company cannot confidently project a recovery at Loans.co.uk in the foreseeable future and regretfully the decision has been made to run off the existing business . This will happen in an orderly fashion."

Staff at the Watford-based business have been given 90 days notice of the closure and told that the company expects to complete its last customer loan early next year.
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