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In a statement to the stock exchange today (25 September), the lender said the changes would result in the loss of 370 jobs, with a targeted annualised savings of £15m.

The lender said the cuts would include 20 business development managers and the remaining 50 in-branch mortgage advisers.

Kerry Harvey, press officer for Bradford & Bingley, said she could not comment on individual positions or if senior management roles would be affected.

Existing activities at the company's mortgage processing centre in Borehamwood will be transferred to Bradford & Bingley's larger operations centre in Bingley, West Yorkshire.

It is anticipated the workload from the Borehamwood site will be absorbed within the current staff at this location, with the Borehamwood site itself closing in the first quarter of 2009.

A company statement said: "In order to further align the shape of the business to operate efficiently, Bradford & Bingley has taken the decision to remove the remaining mortgage advisers from the branch network.

"The company will also restructure its intermediary distribution team, reducing selling and support capability to reflect its lower lending ambitions, while retaining a sufficiently strong presence to enable it to respond quickly to a return to growth."

Bradford & Bingley said it would also review its head office support functions to reduce its costs to a level that was sustainable in the long term, which will likely result in a further reduction in staff numbers.

However, Bradford & Bingley said it had no plans to reduce the number of branches.

Richard Pym, chief executive, of Bradford & Bingley said: "The changes we have announced today focus the business as a strong savings bank, reduce the size of our lending activities, and increase our capacity in arrears collection.

"We are a strongly capitalised bank now undertaking a complex transition with regrettable job losses, but we are planning to put the problems of the past behind us and have a business which is fit for purpose going forward."

The new follows speculation over whether Bradford & Bingley is next in line for a takeover, with FSA reported to be in talks with potential buyers should the lender hit difficulty.

Among the lenders thought to be taking an interest are Santander, whose shareholders approved a takeover of Alliance & Leicester on Monday, and Virgin Money, which has confirmed its ambitions to have high street presence.

Dutch bank ING and National Australia Bank have also been reported to be taking an interest.