Unity Homeloans has announced to the market that its board has decided to restructure the business and outsource administrative and client support functions.
This is likely to result in a number of redundancies at the lender although this has not yet been confirmed by Unity.
There has been speculation in the market that the lender was holding staff meetings last week in order to confirm the news. This comes despite Unity Homeloans confirming last month that it would be returning to the market with its former backer Investec.
Unity Homeloans was one of the first sub-prime lenders to withdraw from the market at the beginning of August.
In a statement, Unity Homeloans chief executive officer Paul Thomas says: “Unity is having to deal with the current market turmoil in the same way as many other lenders and this restructure is designed to provide continuity. We will complete a review of our origination strategy once the outsourcing is finished. ”