HBOS to cut 425 jobs, shut one mortgage brand -FT
LONDON, Aug 14 (Reuters) - British bank HBOS Plc HBOS.L is to cut 425 jobs and shut down one of its five mortgage brands to new business in a cost-saving exercise, the Financial Times newspaper reported on Thursday.
Last month, Britain's biggest home lender reported a sharp drop in first-half profits as a result of the global credit crunch.
The changes at HBOS were targeted at eliminating an overlap between the mortgage brands.
"This is a more effective way of operating the brands and will help remove duplication," Nigel Stockton, head of HBOS Intermediary Mortgages, was quoted as saying.
Britain's housing market is experiencing a sharp downturn. After years of easy credit and booming prices, the housing sector has slumped in recent months. Activity has slowed as lenders tighten their criteria for handing over money and house prices have fallen sharply, by up to 20 percent in some areas.
HBOS, which has already said it may consider asset sales, will stop writing new mortgage loans at its TMB division, which specialises in the hard-hit buy-to-let market and the self-build sector.
The bank will also stop offering conventional mortgages via its Intelligent Finance brand. Future customers will need to open a current account alongside a savings account in order to qualify for a home loan.
The newspaper said 325 jobs will go in the mortgage operation and 100 from IT positions, adding that the bank intends to redeploy staff and avoid compulsory redundancies.
The changes would not affect HBOS's main mortgage brands - Halifax, Bank of Scotland and Birmingham Midshires, it said.
Existing TMB and IF customers will also not be affected. (Writing by Matthew Jones; Editing by Braden Reddall)
