A mortgage company is to create 300 new jobs in Cornwall because of an increase in business.

The Mortgage Group (TMG) is to take on the staff over the next three months to meet "significant demand" for its services.

The new staff, to be based at offices in Truro and Falmouth, will be responsible for processing mortgage applications and tele-sales.

It is also to take on a further 200 new staff at new centres in Crewe, Cheshire and Droitwich, Worcestershire.

Falmouth's mayor has welcomed the new jobs

TMG currently lends more than �450m of mortgages a year and employs 450 people in the UK.

The company sells mortgages to customers who find it difficult to get a deal from a high street bank or building society.

Many of the jobs will be for tele-sales staff. Currently, the firm calls 6,000 members of the public a day.

Staff are on a fixed salary but commission is also paid.

Managing director Tony Murtagh said he believed TMG could originate sales of more than �1 billion by the end of 2003.

Jobs welcomed

"Today there is a greater awareness of the specialist companies that operate within the mortgage industry.

"With mortgage interest rates low, it's easy to understand why the demand in our corner of the market is growing."

The opening of the company's new call centre in Falmouth has been welcomed by the town's mayor, Maureen Davies.

She said it could offset some of the job problems caused by a fire which affected Falmouth Docks earlier this month.