The firm, which currently has 160 staff, will now enter a 30 day consultation with staff.
A spokesman for the firm says: “The mortgage market is not going to pick up this year and probably not well into next year. It is unfortunately necessary that we make some job cuts. We’ve told staff this morning.”
Kensington says the job cuts will come from across the company.
He adds: “We need to slim down. The current company is built for a better economic environment.”
A statement says: “It has been apparent since early this year that sustainable capital market funding will not return to the mortgage market in the immediate future. But it will return and the key to capitalising on this upturn will be the retention of talent that will take advantage of the opportunities when they come.
“In order to maintain Kensington’s platform, as a springboard for future success, the immediate priority must be to protect the core of the business in the current environment. With this in mind it has been unfortunately necessary to make a number of redundancies to ensure that Kensington is the right size for survival in the short term and for success in the long term. This decision has been taken with careful consideration and the full backing of Kensington’s parent, Investec.”
Head of Kensington Keith Street says: “Although business volumes will be significantly down for the foreseeable future, Kensington believes the mortgage market will recover and that having experience and expertise in the right positions will be key to our ability to capitalise on the upturn. We have therefore retained our senior management team and key talent throughout the business and will harness this talent to maintain a focus on service for new and existing customers, while also exploring opportunities for further diversification.”