The Egg-owner’s stop on all new lending at its Future Mortgages and CitiFinancial personal loans businesses is part of a wider plan to cut costs after the bank took a £16billion, global credit-crunch hit.

It is expected to affect 400 jobs in Doxford, Sunder­land, and 270 at 49 loan centres around the country.

The company will also pull back on all mortgage lending through Egg to focus on its growing market share in credit cards, which are cheaper to finance than mortgages.

A spokesman said both new lending to existing customers and lending to new customers would be cancelled.

“Following a strategic review of the consumer business in the UK, Future Mortgages and CitiFinancial were not identified as areas for strategic growth,” said Citi’s UK consumer bus­iness manager, Bert Pijls.

“By focusing on our Citi and Egg brands, we are reflecting Citi’s global strategy.”

Citi plans to cut at least 9,000 jobs from its 370,000-strong global workforce.