The lender has cited market conditions as the driving force behind this latest move to 'streamline operations.' It will also be increasing its level of automation 'in preparation for market recovery' and to improve its online proposition for all UK mortgage distributors.
The company is also making use of the resources and capabilities now available to it within Investec plc’s Capital Markets division. Against this strategic background, the current lack of liquidity in the global capital market - and Kensington’s decision to be cautious about the level of new business originations until the market shows sign of recovery - has resulted in the company accelerating its move to a lower cost base, whilst developing its capability to broaden its business and quickly respond when market conditions change.
Alison Hutchinson, chief executive officer of Kensington said: “We have said all along that we would make tough decisions. We must ensure that the company has a business model that is robust until the market returns and which can thrive in the future, when we think the market will be quite different from the way it looks today.
"We have spoken to our distribution partners about these changes and we are moving quickly and decisively to shape a business that is ready for market recovery and able to deliver growth from a much wider platform.
“We will now begin a formal consultation process and will treat all our staff – whether they will be leaving us or staying – in a professional and fair manner. We will ensure that all leavers get the support they need to find new opportunities to use the experience and skills they have built up whilst with Kensington.”
