Mortgage lender close to new alliance

Tue 15 Jul 2008

UK mortgage lender Alliance and Leicester is close to agreeing a sale to Santander, the owner of Abbey, it has been reported.

The bank announced it is in "advanced" talks with an unidentified bidder, discussing a deal worth £1.3 billion.

Like other lenders, it was affected by the sub-prime crisis, although a takeover could help consolidate a future for workers in jobs at Alliance and Leicester.

Simon Maughan, analyst at MF Global Securities Ltd, told Bloomberg Santander has "been looking at increasing its returns in the U.K., which are lower than anywhere else in the world".

The number of financial services employees fell in the first quarter of this year, a recent survey by the Confederation of British Industry found.

Recruitment agencies are often able to find positions for people hoping to work in sales or legal departments of UK banks.