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Sub-prime crisis to hit 1,000 UK jobs

The number of job losses in the UK mortgage market as a result of the US sub-prime crisis is set to top 1,000.

GMAC-RFC cut over 200 jobs last week and a fur- ther 66 as it closed its sub-prime subsidiary High Street Home Loans.

In the last few months, Lehman Brothers announced up to 150 UK job cuts, including the closure of London Mortgage Company and Southern Pacific Personal Loans. Morgan Stanley’s UK subsidiary Advantage made 90 redundancies and Victoria Mortgages closed, affec-ting 50 jobs.

Wave, Infinity Mortgages, Unity Homeloans and Network Data have also confirmed they will cut staff.

Investment banks UBS and Credit Suisse have also announced worldwide cuts. UBS says 1,500 jobs will be axed worldwide while Credit Suisse has confirmed that it will axe 150 jobs in its mortgage-backed securities department.

It is unclear how many of these jobs will be UK-based. If included, this would sky-rocket the number of UK job losses as a result of the sub-prime fallout.

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