Third-party servicer Crown Mortgage Management is set to be acquired by Capita Asset Services for an undisclosed sum.
CAS is a division of the FTSE 100 company Capita, which has 2,500 employees across the UK and Europe and currently manages £129bn of commercial loans.
The deal will give Capita an entry into the residential mortgage servicing market.
Based in Ipswich, Suffolk, Crown employs 130 staff and there are currently no plans to remove staff as a result of the deal.
Crown managing director Andrew Doyle says: “The businesses are a perfect fit for each other. Capita offers scale and end to end solutions for loan administration for the commercial and securitisation markets, but does not have a footprint in the residential mortgage space which Crown does.
“We are joining a dynamic and fast growing business. The change represents an even stronger future for Crown with greater potential for market growth and success for the company and our employees.
Doyle and Crown’s executive team will stay with the firm.
In an interview with Mortgage Strategy in April Doyle revealed that over the next year Crown would be making a big push to attract new origination business. As well as looking to attract new lenders breaking into the UK mortgage market, he revealed it was also aiming to attract mainstream high street lenders looking to reduce their servicing costs.
Capita chief executive Andy Parker says the purchase of Crown will strengthen the range of services it can offer financial services clients and provide it with an immediate foothold into the residential loan servicing market.
He says: “We think that the combined strengths of Capita and Crown will provide a compelling proposition both for the traditional and challenger banks, particularly as we invest in infrastructure to support both existing and new mortgage administration.”
The deal is subject to FCA approval.