Victoria Mortgages has confirmed it will be making 50 employees redundant after its administrator KPMG failed to find a buyer for the lender after several weeks of talking to interested parties.
The move comes as Unity Homeloans has admitted it will be cutting jobs after its board took the decision to restructure the business and outsource administrative and client support functions.
Victoria and Unity Homeloans were among the first non-conforming lenders to withdraw from the sub-prime market at the beginning of August.
Victoria announced it was entering administration last month and despite KPMG not being able to find a buyer, the lender says it is still trying to complete a sale for the remainder of its £300m mortgage portfolio.
Unity, which was previously funded by Investec, said last month that it would definitely be returning to the market, with Investec once again as its backer.
Em Financial managing director Roger Morris says he does not understand Investec’s current strategy after it took the decision to refocus Kensington on the prime sector.
He says: “It seems that Investec is attempting to move away from the packaging market. Kensington seems to be going down the direct-to-broker channel and I do not really know what is happening to Unity Homeloans.”