US banking firm Morgan Stanley has felt the effects of the credit crunch as it confirmed it would be making 600 staff redundant, with 90 job losses in the UK.
The 90 job redundancies will related to its UK subsidiary Advantage.
Morgan Stanley’s restructuring will see it combine its three US mortgage units into one and close several offices.
The bank said it would reduce the size of business to a level appropriate for the existing market.
Meanwhile Advantage has announced changes to its ADV, buy-to-let and self-cert ranges in order not to be seen as a lender of last resort.
The changes to these product ranges will take place today.
On its non-conforming range the following changes will take place:
– ADV:600 and ADV:700 will be removed from the range
– ADV:500 maximum 75 per cent LTV and maximum number of CCJs will be 4
– ADV:400 maximum 80 per cent LTV Verified, 75 per cent LTV Self-Cert
– ADV:300 maximum 85 per cent LTV Verified, 75 per cent LTV Self-Cert
– ADV:200 maximum 85 per cent LTV Self-Cert
– ADV:100 criteria remains unchanged
It will also be increasing tracker rates by 0.35 per cent but says it fixed rate pricing on the ADV range is not affected.
On the BTL range, two-year tracker rates are being amended and will start at 6.39 per cent. On the Self-Certification range, two year tracker rates will be available at 7.19 per cent. Fixed rate pricing is again not affected.
Managing director Keith Dearling says: “Advantage reviews market conditions on a daily basis and in spite of current market conditions offers leading products at high LTVs and good rates. We have not moved our criteria as far as many in the market, and having reviewed the full product ranges we have left some products unaffected such as our best selling product ADV:100 and all of our fixed rate products.
“We have concentrated in the lighter adverse end of the market, where we can still offer 90% Self-Certification products, alongside the Prime Self-Cert and BTL markets where we offer 90% and 85% LTV respectively. This is coupled with our unique Flexishare product that offers 97% LTV, providing affordable financing for those wishing to purchase a home.”