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Credit crunch sparks a mortgages exodus

Mortgage professionals are looking to move out of the mortgage market and into different sectors of the financial services industry as the credit crunch forces even more mortgage firms to make job cuts.

Last week, GMAC-RFC announced it is making 266 employees redundant as well as shutting sub-prime subsidiary High Street Home Loans. The same day, broking group Black And White confirmed it has asked 50 staff members to consider voluntary redundancy.

US investment banks including Morgan Stanley, UBS and Lehman Brothers have all made global job cuts in the last month as a result of the fallout from the US sub-prime crisis. Merrill Lynch subsidiary Wave also confirmed last week that it would be making around 20 employees redundant.

James Associates recruitment consultant Simon Benstead says there is a trend emerging of a lot more mortgage professionals becoming interested in moving to other financial areas.

He says: “We have also noticed a lot more mortgage CVs on the online job websites. We tend to look at their previous skills and if they work in an IFA firm, we can then try to move them into other areas.”

Keillar Resourcing managing director Harris Keillar points out that the only problem with trying to move mortgage professionals into other financial areas is that they often do not have the required financial qualifications.

Envison Personnel Solutions recruitment consultant Darren Mackie says: “We have seen a lot of roles that have been put on hold for the time being. There is not the urgency of moving the job on.”

Mackie says mortgage firms do not want to take senior management on at the moment.

He says: “Things are still on hold. Hopefully, the situation is not going to get much worse. I think people are just seeing how it goes at the moment.”

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