Computershare has been appointed preferred supplier in the tender process to undertake the mortgage servicing activities of UK Asset Resolution Limited (UKAR), which was established in 2010 to administer the closed mortgage books of both Bradford & Bingley and Northern Rock Asset Management.
This follows a tender process. Computershare can now work with UKAR on an exclusive basis to finalise details over the coming months, with a view to agreeing binding contract terms.
Naz Sarkar, CEO of Computershare in the UK, said: “This opportunity builds on our acquisition of HML in 2014 and reflects our desire to establish a strong and growing UK mortgage servicing business with a focus on high quality service for customers. While we are of course pleased with this news of our preferred supplier status, it will be a number of weeks before a contract is signed. A dedicated team will now concentrate on this next phase of work.”
The contract is for a seven-year term to undertake mortgage servicing activities on behalf of UKAR, with £30bn of assets under management. In addition, there are separate contracts for the servicing of the £13bn of assets purchased by Cerberus from UKAR in November 2015
After signing of a contract, around 1,700 staff based in Sunderland and West Yorkshire would transfer to Computershare and would continue to service customers.
Mortgages will continue to be serviced on existing UKAR systems as part of the transaction.