Mortgage News
Job fears as HML warns of redundancies
Brokers have voiced fears of further industry job losses following the news that mortgage servicing business Homeloan Management Limited considers cutting 164 jobs and closing its Scarborough office.
The Scarborough site has been identified for closure by HML because of its high costs and under capacity. Of a total workforce of 2037, 164 roles have been placed in a three-month consultation for redundancy. Of these, 136 are in Scarborough, 17 in Skipton, two in Padiham, two in Glasgow and seven in Derry.
Brian Brodie, chief executive of HML, said: “We hope our clients and employees will recognise that as a responsible business, we must make tough decisions that are in the long-term best interest of the majority of our employees.”
Some brokers are worried that more jobs in the mortgage market may be at risk, as regulatory and economic pressures weigh heavy on businesses.
Ashley Clark, managing director of NeedAnAdviser, said: “The Retail Distribution Review and capital adequacy requirements are like swords hanging over the financial industry. Companies have to hold three times their monthly fixed expenditure and will therefore have to look at their fixed costs and employment contracts. I can see the industry moving much more to bringing in contractors.”
David Hollingworth, mortgage specialist for London & Country, agreed that the future was still uncertain: “Everyone is taking each step as it comes. There are still concerns of a double dip recession and conjecture over what will happen when the Bank of England withdraws its funding.
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Things are more encouraging at the moment, but we are still in a very restricted market.”
But some are more positive about mortgage industry employment prospects. Rob Jupp, director of Savills Lending Solutions, said: “Although redundancies are a tragedy for those affected, new opportunities are starting to emerge within the lending sector. There have been positive statements of intent from the likes of Aldermore, Kensington, Virgin and Tesco, and I expect others to follow suit soon. This should help to bring many of the quality people back into the industry that they served well for many years.”