Vertex says that DB Mortgages has reviewed its strategy within the mortgage market for 2008 and will be implementing a revised business model next year which will require the reduction of costs within the business.
Up to 55 jobs are potentially at risk across the marketing, sales, underwriting and risk functions. Vertex claims that this move has been necessitated by the current conditions in the mortgage market.
Vertex is entering a 30-day consultation period with the affected employees.
A spokeswoman for DB Mortgages says that as a result of the market turmoil which has led to a decrease in business levels it was forced to also decrease its staffing requirements.
She says: “We have been making changes to our business model in the last few months by reducing product offerings and making changes to criteria. We still have a relationship with Vertex. Most of this has been in relation to market conditions.”
She says that DB Mortgages has no current plans to reduce its own staff headcount and that Deutsche Bank remains committed to DB Mortgages as its UK lending arm.