Mortgage broker Blackandwhite.co.uk has announced it has today asked 50 staff to consider taking voluntary redundancies.
Chief executive officer Thomas Reeh says as it is heavily involved in the non-conforming sector – particularly in the medium and heavy side of business – the combination of lenders increasing rates, reducing procuration fees and withdrawing lending criteria means it has had to make this move.
He says: “We had record completions in August but we’ve been hammered by lenders increasing rates and reducing procuration fees. Whilst operationally we were ahead of targets, we’ve had to react to the current market conditions.”
Reeh says as the firm has taken the view that the current market conditions will continue for another six months, it has had to look to rationalise 50 out of its 200 staff members.
“It’s sad that we’ve had to do this especially when we have been doing so well. We won’t be the only firm that will have to be doing this I’m sure.”
In a statement, Reeh says: “It’s regrettable that we have to take this step, but like all intermediaries active in the non-conforming mortgage sector, revenues have been hammered. Lenders have upped their rates, increased arrangement fees, withdrawn lending criteria and reduced procuration fees all of which have significant consequences to our business. We have as a business needed to act quickly and decisively to ride out the storm and post cuts we will be in very good shape to face the future and its challenges.’