Capital One to close its homeowner loans division in UK

Following the release of a statement recently Capital One Bank has announced that it will be closing its homeowner loan division in the UK.

Capital One has become well known in the UK for its credit cards, which are available to those with poor credit ratings as well as those with good credit, and has also become popular for homeowners loans from those that wish to borrow money against their homes based on their equity levels.

The homeowner loan division in the UK is based in Cheshire, and the closure of the homeowner loan division will mean job losses in excess of two hundred. The division specialises in offering homeowners loans to those with bad credit, as well as offering remortgages to those with a tarnished credit history. Capital One Bank Europe recently released a statement to confirm that the division would be closing and that these products would no longer be available.

Sanjiv Yajnik, principal managing director of Capital One Bank, stated: 'While a difficult decision, it is based upon the strategic fit of our homeowner loans business with Capital One's future direction in the UK. Capital One remains committed to building its business here in the UK and we will continue to offer innovative and market leading products to our UK customers.'

The popularity of homeowners loans in the UK has been rising over recent years, as more and more homeowners have found themselves with increased levels of equity due to rising property values, and this has resulted in greater leverage for them when it comes to borrowing money against their homes.

 

Tom Smith
30th July 2007

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