The mortgage servicer will also acquire the bank’s third party mortgage administration business, Western Mortgage Services, and its mortgage processing and administration operations.
Capita will manage processing for the Co-operative Bank, Platform and Britannia brands and will install new systems using digital technology and customer analytics and insight.
Stuart Beattie, head of mortgages, at The Co-operative Bank, said: “This agreement underlines our commitment to the broker market and supports our plans for substantial growth in mortgages. It will drive up the high standards of service we want to provide to our customers and brokers.
“Transferring our mortgage processing operations to Capita will help us to develop more efficient mortgage processes and systems, and enable us to respond more nimbly in a competitive market,” he added.
“We will continue to work closely with Capita to ensure a smooth transition and a seamless service.”