Barclays will stop taking on new second charge mortgages at its Firstplus, Barclayloan and Fair & Square subsidiaries.
The move will affect around 300 staff, though 130 will be retained to manage existing accounts. The news has caused Moneysupermarket.com to release a profit warning as it faces a £7m loss of business. Problems is in the housing market have resulted in extremely low demand for second charge loans, which allow homeowners to borrow additional money secured on equity in their homes. Neil Radley, managing director of Firstplus, comments: “In the past year we have tried a whole range of activities to develop our business but the market demand simply isn’t strong enough.” The news has hit Mone...
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