The deal is subject to the agreement of final terms, but The Co-operative Bank today announced that Capita had won through as its preferred bidder.
Under the proposed contract Capita will take on responsibility for the relationships with more than 250,000 mortgage customers and brokers. To do this it will acquire Western Mortgage Services Limited, The Co-operative Bank’s mortgage administration business based in Plymouth, as well as its other processing and administrative operations based predominantly in Staffordshire.
This will see the 660 staff currently employed by The Co-operative Bank transfer to Capita plc.
Niall Booker, chief executive at The Co-operative Bank, said: “It is vital we improve our processes, consolidate and utilise up to date mortgage systems and, as a smaller bank, ensure we can respond nimbly in a competitive market, mindful of the impact of increased regulation to our cost base.”
Looking to the future he added: “These proposals to partner with Capita would support our plans for growth in retail mortgages and would enable us to continue to deliver high standards of service to our customers and brokers.”
Andy Parker, chief executive of Capita, said: “Capita would work with The Co-operative Bank to deliver an enhanced service for customers, by, for example, using analytics and insight to give them the experience they want and expect from their mortgage provider.”
