Co-op Bank awards £141m mortgage contract to Capita

Outsourcing firm Capita plc said on Thursday it has renewed its contract with Manchester-based Co-operative Bank to run its mortgage servicing operation in the UK and to “continue to support the bank’s digitally enabled transformation.”

Capita and Co-operative Bank have resolved their differences after a public row over alleged failings connected to a servicing contract.

Capita said the renewed contract is worth up to £141 million over six years, “of which £107m is incremental to Capita’s current contract with the bank and begins on 1 November 2019.”

Capita’s existing contract with the bank for its mortgage servicing operation was signed in August 2015 and was due to conclude in 2020.

Co-operative Bank CEO Andrew Bester said: “Our mortgage business continues to thrive and is central to our future plans for The Co-operative Bank.

“The service Capita provides our customers is a key element of our success in a competitive market, and we are delighted to be renewing our partnership.”

Capita CEO Jon Lewis said: “I am delighted that The Co-operative Bank has chosen to renew our partnership.

“This is testament to a new Capita, which is working more collaboratively with its clients, and is strongly aligned to the bank’s values as a responsible business.

“We look forward to offering an even better mortgage service to The Co-operative Bank’s customers which will make the process of securing a mortgage much faster and smoother.”