Paragon is to make up to 93 of its 650-strong workforce redundant as part of plans to restructure its Paragon Mortgages and Mortgage Trust divisions.
The lender says 38 of these staff are broker-facing and have entered a formal 30-day consultation period.
The Paragon Mortgages and Mortgage Trust salesforces will be merged into a national multi-brand sales team headed by Andrew Lees. Mortgage Trust head of sales Austin Jelfs will be leaving the group.
The lender says it will continue to maintain its Paragon Mortgages and Mortgage Trust brands.
It recently completed a £287m rights issue to pay off its £280m corporate facility but it is no longer writing any new business as it was unable to renew its warehouse facility due to the liquidity crunch.
Home Funding chief executive Tony Ward says Paragon’s staff levels still seem high, even allowing for these cuts. He says: “It has got 650 staff and is not doing any new business. What are the rest of the staff doing? I am surprised Paragon is still running two separate brands as there is not a differentiator between the two. Maintaining two brands is very expensive.”