Mortgage Next has become the latest firm to announce job redundancies, confirming that approximately 11 out of 73 jobs will be cut.
It says that the job cuts are primarily focused in the company’s packaging department which has seen volumes of sub-prime business reduce by more than a third over the course of the past two months.
Founding director Justine Tomlinson has decided to leave the company and in future the business will be presided over by a single managing director, Gemma Harle, with Lisa Barber taking on the role of sales & marketing Director.
Tomlinson says: “As a founding director of Mortgage Next, I have spent the past 11 years helping to grow the company into what is today a strong and well respected brand in the mortgage market. I believe Mortgage Next is in an excellent position to meet the challenges of a more demanding mortgage market head on and I have therefore made the decision that the time is now right to hand over the reigns to the rest of the management team to steer the company through its next phase of its development. I’m looking forward to spending more time with my young family and pursuing other interests.”
Chairman and founder Martin Maynard says: “The sudden downturn in the sub-prime market has left Mortgage Next with considerable over-capacity in our packaging department. We do not anticipate a quick revival of fortunes in the sub-prime sector and therefore have no option but to realign our processing capacity with lower anticipated future volumes of business.
He adds: “Looking to the future, we have extensively stress tested our business model against the most extreme and, hopefully, unlikely outcomes for 2008 and beyond and believe we are now in good shape to prosper in a more challenging market.”