Watford based secured loan broker, Loans.co.uk, one of the biggest employers in Watford, is to close to new business, taking with it some 276 jobs.
Last month the broker announced that it was struggling to ride out the Credit Crunch – explaining that the third party loans it relies on were in danger of drying up.
In a statement released yesterday the broker said it could no longer operate in this current environment and expected to complete its last customer loan early next year.
The statement read:
“A number of factors have led to this difficult decision. As a loan broker Loans.co.uk relies on third party providers to provide loans to its customers.
“A number of key partners have tightened lending criteria or are unable to accept new business. At the same time, house prices have been declining, making it more difficult for customers to fit within lenders’ (tighter) loan-to-value criteria.”
“Looking forward the company expects house prices will continue to decline and lenders will continue to be cautious. (Insuranceblogger agrees whole-heartedly, see our other credit crunch label posts.) The company cannot confidently project a recovery at Loans.co.uk in the foreseeable future and regretfully the decision has been made to run off the existing business. This will happen in an orderly fashion.”
The company confirmed that 276 positions would be lost. The broker has two other smaller offices in Preston in Lancs. and Fareham in Hampshire.