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Monday 01st of December 2008
August 13, 2008

HBOS announces 325 job losses


by Kay Murchie
”HBOS

Banking giant, HBOS, has announced its intention to axe 325 jobs by the end of March 2009 as it closes one of its specialist mortgage brands.

The bank, which was created by the merger of Halifax and Bank of Scotland, said the jobs are to go after its division, The Mortgage Business (TMB), is to close to new custom at 8pm on 22 August.

HBOS said existing customers with a TMB mortgage will not be affected. TMB was established in 1989 and specialises in buy-to-let and self-certification mortgages.

A HBOS spokesperson said the job cuts are part of an attempt to streamline the business and it is hoped that the jobs will be cut through voluntary redundancies and natural wastage.

The news comes after it posted a huge slump in profits at the end of last month. Pre-tax profit fell from £2.99 billion in the first half of 2007 to £848 million compared with the same period a year ago.

The job losses have been described as a ‘blow’ by Unions who believe they are larger than HBOS is admitting.

According to the Unite and Accord unions, closure of the arm will have an impact on jobs in Cardiff, Chester and Livingston.

As a result of the credit crunch, there have been many job losses in the UK financial services sector.

HBOS has five mortgage brands - Halifax, Bank of Scotland, Birmingham Midshires, TMB and Intelligent Finance.

As part of the streamlining, HBOS added that its specialist offset mortgage provider, Intelligent Finance, is to focus on its core business, with all offset mortgages sold with a requirement to include savings and a current account.

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