As part of the deal Capita will also acquire Western Mortgage Services, Co-op’s third party mortgage administration business based in Plymouth, and take over its mortgage processing and administration operations, which are predominantly based in Leek.
Through WMS, Capita will provide services to the bank’s 200,000 mortgage customers from 1 August 2015.
The lender also revealed the move would support its plans to grow mortgage lending this year.
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.
“We will continue to work closely with Capita to ensure a smooth transition and a seamless service.”
