Mortgages Plc has had to feel the brunt of its parent company’s astonishing financial losses, and has been forced to make redundancies across the board.
It has been confirmed 20% of the company’s workforce, which numbers 325 in total, will be made redundant.It is also understood all employees had a three line whip to attend regional meetings this morning, when the redundancies were announced.
Merrill Lynch, which owns Wave as well as Mortgages Plc in the UK, reported last week a net loss from continuing operations for the third quarter of $2.3bn. The global investment giant also confirmed the departure of its chief executive Stan O’Neal yesterday.
The announcement today will be a massive blow to the UK financial services sector, as fears of a severe set-back for the securitization model look set to become a reality.
Peter Beaumont, deputy chief executive of the specialist non-conforming lender, said: “Mortgages plc, in common with most non-conforming lenders, has had to rein in its new business activities until such time as confidence is once again restored in the marketplace. Reduced new business volumes mean that our operating costs also need to be cut back. However, I would like to stress that Mortgages plc remains committed to the UK mortgage market.”.
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