TMB will no longer be accepting new business from August 22, although the brand will remain for existing customers, and Birmingham Midshires will be responsible for all new intermediary business previously handled by the brand.
The Intelligent Finance brand is set to become even more focussed on its offset portfolio, as well as generating increased savings business.
From next month there will be a requirement to include savings and a current account with every offset mortgage, while standalone banking products other than savings will no longer be offered.
HBOS’ mortgage operations, including IT and product design teams, are being streamlined to remove any duplication of rules.
HBOS expects that by the end of March 2009 up to 325 staff will leave the company as a result of these changes, but it aims to achieve this through redeployment, voluntary severance and normal turnover.
Last month TMB managing director Nigel Payne became managing director of BM Solutions.
He says: “It’s been a shock to the team, but the market deteriorated much faster than any of us expected.
“We have already identified a high number of roles for current TMB employees within HBOS. Also, here in Chester there is almost near-full employment – people are crying out for staff in the area.
“Of course those who wish to join me at BM could still have that option.”