HBOS sees mortgage jobs cut
August 26, 2008
Halifax owned HBOS has recently announced that parts of its mortgage operations are to close, and this will result in several hundred job losses according to industry officials. The mortgage meltdown has resulted in many different problems over recent months, with lenders unable to offer mortgages at the same level as preciously due to the global credit crunch. This has resulted in fewer people being able to get mortgages and a stark reduction in business for struggling lenders.
As a result of this situation many jobs in the mortgage and the housing sectors have been affected, and HBOS has announced that the Mortgage Business, which is an arm of HBOS, is to close to new customers later on this month, and a mortgage processing centre is to be closed. Union officials have said that whilst HBOS has said that the closure and changes will result in the loss of around 325 jobs by the end of March next year the actual number of job losses is far higher. The bank reported pre-tax losses of 72% earlier this year.
One union official stated: “This is a further blow for jobs in the UK financial services sector which is being brought about by the credit crunch and the changing economic climate.” Another union official stated: “We are never happy about any reduction in roles in HBOS even if we understand the commercial logic for the changes.”
However, officials from the bank have said that they are hoping that the job losses will come through natural turnover and through voluntary redundancies. Bank officials have said that it is important in the current economic and financial climate for HBOS to focus on streamlining its operations, and amongst the areas in which jobs are likely to be affected are Livingston, Chester, and Cardiff.
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