04 Mar, 2008
Tanya Powley - 04-Mar-2008
Skipton Building Society subsidiary Amber
Homeloans has confirmed it is to close to new business as a result
of the liquidity crunch.
It says it will now concentrate on managing the company's
existing portfolio of loans and will be honouring all of its
pipeline business. It says it will be notifying brokers of the
withdrawal of its products along with notice of when final
applications will be accepted.
Up to 42 members of staff are now entering a consultation period
but a spokeswoman for Skipton insists that not all of this number
will result in redundancies.
Managing director Gordon Jolly will be taking a role on
Skipton's operational board as general manager responsible for
the society's credit and lending function.
Finance director Paul Gittins will head up the team administering
the existing loans.
Jolly says: "Amber was created six years ago as a specialist
lender, with the aim of building its business through the
origination, buying and selling of mortgage assets. Thanks to a
fantastic team, we've been phenomenally successful at this and,
even though it was never our intention to grow beyond a certain
size, now have a balance sheet of £1.5 billion.
"However, many of the ways in which we temper our level of
risk are currently closed to us, such as securitisation and asset
trading, and so we've decided it's time to pause for breath and
wait until the market returns to more normal conditions."
The firm says that there will be opportunities for the majority of
affected staff to take up positions with other subsidiaries of
Skipton, such as Homeloan Management, or the Society