UKAR eyes up outsourced mortgage services role
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UK Asset Resolution is setting its sights on offering back-office services to mortgage lenders, according to people with knowledge of the firm.
The Financial Times reports while UKAR’s priority continues to be shrinking the loan books of Northern Rock and Bradford & Bingley, it is looking at reinventing itself by offering outsourced services such as processing loan applications, credit checks and overseeing records.
UKAR is currently focused on repaying the outstanding £48bn government loan that formed part of the two banks’ bail-outs, but once it has made more headway in running down its troubled mortgage book, the firm is considering running mortgages for new lenders that may enter the market as the economy improves.
Analysts say broadening its service offering would be a logical way for the company to sustain itself as the loans are repaid, as well as potentially encouraging new lenders or foreign banks to enter the market.
The FT notes there is currently little competition for the outsourcing of mortgage services, with HML being one of just a handful of providers.
Individuals familiar with the firm report UKAR is investing heavily in its business despite being in rundown and later this month the company is expected to reveal a profit for 2010.
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Readers' comments (1)
Chris Gardner | 22 Mar 2011 9:51 am
"UKAR does not have a "trouble mortgage book". It simply holds some loans that are of a type that have no remortgage prospects. Funny thing is most of the loans are performing perfectly well and are far from "toxic".
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