Barclays stops Firstplus loans

The economy spirals closer to the edge of the abyss. The latest news is that Barclays plans to stop selling new loans via Firstplus, the UK's largest supplier of homeowner loans, due to slowing demand. Firstplus supplies secondary loans to those that already have mortgages, allowing homeowners to borrow based on the equity held in their property.

As a result, around 300 jobs of the 450 total jobs would be lost when the company stops serving new customers next month. Moneysupermarket.com's profits will also take a hit, Moneysupermarket.com estimates this may be by as much as 10%.