Capita has struck an acquisition and mortgage transfer agreement with the Co-operative Bank and its subsidiary Western Mortgage Services, in a deal valued at £325 million.

Capita will manage the bank’s mortgages; the deal involves the acquisition of Western Mortgage Services and the transfer of 327 WMS employees. The outsourcing giant will ultimately be servicing over 200,000 mortgage accounts and £20 billion of lending.

"Capita will work with The Co-operative Bank to deliver an enhanced service for customers. This will be done by drawing upon Capita's existing and wide-ranging commercial debt-servicing capabilities and its heritage of large-scale customer service transformation across a range of industries,” said Andy Parker, chief executive of Capita.

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