Tuesday, February 3, 2009

Further blows to Government plans for increased mortgage lending

Barclays puts 200 retail mortgage staff in consultation

Barclays have placed 300 staff into consultation with some 200 affected employees from its retail mortgage sales division. Employees under Woolwich, the mortgage brand for Barclays, will also be affected.The bank says that although 300 staff have entered into consultation, it is hoped the expected number of resulting redundancies will be “significantly lower. The mortgage market slowed in 2008 and it is widely accepted that this is likely to continue to an extent into 2009.

Posted by jack c @ 04:54 PM (897 views)
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6 thoughts on “Further blows to Government plans for increased mortgage lending

  • See also http://www.mortgagestrategy.co.uk/cgi-bin/item.cgi?id=180270&d=403&h=401&f=402

    Goldman Sachs owned Money Partners has suspended new lending due to low demand for its mortgage products.

    In a bulletin to brokers this morning, Peter Brennan, operations director of Money Partners, says: “Money Partners will continue to monitor and evaluate market conditions but at present it is not commercially viable to carry on originating new mortgage loans.”
    One packager says: “Its pricing and criteria meant we did not do a huge amount of business through Money Partners, but it is not good news for the market. “It all rests on the shoulders of Beacon and The Mortgage Works to fill that gap now.” However a spokeswoman for TMW says: “We would not consider ourselves to be in the same category as the likes of Money Partners or Beacon Homeloans, so Money Partner’s latest news bears little relation to us and we have no plans to change our strategy for self-cert and buy-to-let.”

    One source close to the lender was keen to stress to Mortgage Strategy Online that this was a “suspension” and that it was not gone altogether. They added: “We’ve not closed. This is not shutting up shop. It is merely a suspension of lending.” It will continue to process applications until 20 February. All offers issued during this period will be honoured until their expiry date.Money Partners online e-Decision tool will be suspended on Friday, February 6 2009. But it will continue to issue mortgage offers up to and including Friday, February 20.

    Chief executive Colin Sanders and directors Philip George and Daniel Sparks resigned from the lender in December.

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  • See also http://www.mortgagestrategy.co.uk/cgi-bin/item.cgi?id=180187&d=403&h=401&f=402

    Banks could be forced to concentrate on deposits as a prerequisite for lending, claims HSBC’s chief executive. Michael Geoghegan, chief executive of HSBC Group, forecasts that laws will be introduced which require banks to base lending on core deposits. As a result he says that the reliance on wholesale funding will fall away. He says: “Every single month in every single country around the world we look at our asset and liability ratio and we always take deposits first and then we lend. “I think that’s something the banking industry is understanding more and more now.” Geoghegan adds: “I suspect the dependency on wholesale funding will reduce, possibly because of legislation that will be introduced to ensure that banks do focus on core deposits as a prerequisite to lending.”

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  • Hi Jack

    Things are happening in the mortgage industry then.

    Your second post – Michael Geoghegan forecasting laws will be introduced requiring banks to base lending on core deposits.

    I wonder who will be introducing that law, it makes sense, but it won’t help Gordon Brown and his cronies.

    Also I take it by core deposits they are talking about general savings accounts as opposed to deposit required for individual mortgages ?

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  • Just a thought BTW Jack

    We discussed a short while ago (I can’t remember which lender) but I suggested it looked as though they could be going down the route of selling direct rather than through brokers.

    Could this Barclays news be a reflection of the opposite opinion. (IE they see it as more cost effective to put mortgage products through brokers).

    Just a thought.

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  • “The problems we face today cannot be solved by the minds that created them.” -Albert Einstein

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  • Ah, so when I go to the Woolwich to get myself a mortgage (not yet, no) I can expect reduced administration fees! 🙂

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