Edeus to refocus on asset management

  • Story by: Gemma Westacott
  • Magazine: FTAdviser
  • Published Friday , April 18, 2008

Specialist mortgage provider Edeus is to diversify into asset management and savings in response to the increasing impact of the credit crunch.

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The mortgage provider, which operates solely through intermediaries, said the shift, which is due to be formally launched next month, was in order to access alternative income streams.

It follows the temporary suspension of a number of Edeus’ products, including its adverse buy-to-let and adverse self-certification mortgages.

It also follows the redundancy of about 30 staff – 15 per cent of its workforce - last November due to the company taking on a more prudent lending strategy.

In a statement the company said: "In light of the on-going issues in the money markets and their unlikely resolution in the near future, it is prudent for all businesses in the mortgage sector to remain open to diversification opportunities.

"Edeus has explored a number of avenues that have the potential to open up additional income streams both for itself and its mortgage broker partners. Both 'asset quality assessment', and 'savings origination' are areas that we believe have the potential to thrive in the current environment.

"It is the full intention of Edeus to utilise these opportunities to the full. Further details of both initiatives will be made public in the very near future."