InterBay has confirmed it will have to make 25 job cuts as it reviews its position in the market.
It says that it has continued to sustain a competitive product range and flexible criteria while several of its competitors have pulled back from the market.
InterBay says that this has now left it too exposed and with the financial markets not improving it will have to review its position.
Managing director Colin Bell says: “We have had to make some very difficult decisions. As the credit crunch extends into 2008, the financial landscape for lenders has changed. Intermediaries will understand that lenders have to be more cautious during this period of uncertainty. Many mortgage lenders have already taken corrective action and many more will do so in the coming weeks, but that does not make our decision any easier.
“The situation in the finance markets requires us to be prudent and scale back business volume for a few months. Regrettably, this is likely to lead to a reduction in head count of up to 25 staff. I have spoken with staff and will continue to consult with them over the coming weeks. We are extremely proud of our team and the possibility of losing good people, especially when they are successfully hitting target, saddens me greatly. However, we must take action now in order to protect the future of InterBay UK.
Bell adds: “InterBay has built a strong product and good relationships with intermediaries and we intend to remain a significant player in the specialist commercial mortgage market. Over the next few days we will be speaking with intermediaries to ensure we continue to support them and give them excellent service. Over the coming months we have to manage our business volumes and we will do this by reviewing our product and focussing our efforts on key business partners.