Royal London is planning to close Scottish Life Mort-gages following a review of its operations.
No timeframe has yet been outlined for the proposed closure and talks are still to be held with employees but it is expected to affect 10 staff.
Royal London head of corporate affairs Gareth Evans says SLM is not getting the volume of business needed to continue keeping the operation open.
After a review of SLM at the end of last year, Royal London gave the firm six months to get the operation into shape. Evans says it is doubtful that Royal London will re-enter the mortgage sector if SLM closes.
All current mortgage applications with SLM will continue to be processed through to completion.
Evans says: “Scottish Life Mortgages' recent fin-ancial performance and the increasing demands that will be imposed by new mortgage regulation on October 31 lead us to conclude that it will be very difficult for the firm to continue as a viable business.”