Mortgage broker cuts jobs

Mortgage broker John Charcol is cutting a quarter of its workforce and closed three of its eight UK offices, as the mortgage market stalls.

The decision follows a six-month evaluation period during which time it was decided the market is unlikely to recover sufficiently in the short term.

It was also confirmed chief executive Ian Kennedy has left the company, to be replaced by founder John Garfield.

While there will be 39 redundancies at the company a further 30-plus employees will be leaving after failing to meet performance targets.

The number of staff will fall from 275 to 206 and the firm has closed offices in Manchester, Birmingham and Guildford.

The move follows a sharp decline in the mortgage market.

Bank of England data show transaction levels for house purchases fell 63.8 per cent in May – with just 42,000 approved.

"The turbulent and tough times the UK economy is now facing, and the impact on the housing market in particular, will undoubtedly provide opportunities for companies that take the right actions now - and in the future - to ensure survival and profitability," explained Mr Garfield.

John Charcol was sold by Bradford & Bingley at a £90 million loss four years ago, and had previously been one of the pre-eminent organisations in the sector.

Chris O'Toole