Scottish Widows Bank is to end its association with Homeloan Management.
The relationship between the two firms stretches back nearly 10 years. Scottish Widows Bank will now move its growth and transfers portfolios to an in-house system.
Graeme Hartop, managing director of Scottish Widows Bank, says: “This decision in no way reflected any dissatisfaction with HMLs service or the relationship between us.
“Our long-term strategy has always been to administer our business in-house when the time was right.
“It shows just how good HMLs service was and how responsive they were to our business needs that we decided to stay with them for so long.”
Scottish Widows Bank launched into the UK mortgage market in the mid 1990s, signing the contract with HML in 1996.
It was one of the first UK lenders to offer a flexible mortgage product.
The companys product offering includes provision of drawdown credit facilities, an offset mortgage product and an equity release (lifetime) mortgage.
Steve Haggerty, managing director of HML, says: “When Scottish Widows Bank started, we provided a systems platform and operational expertise to help a lender to market who at the time didnt possess the capability to service mortgages post completion.
“That included a full new business process from packaged stage through to completion and, when needed, a full credit management operation.
“Now with almost 10 years under their belts and now owned, of course, by Lloyds TSB, theyve reached the point where they want to do it in-house.
“HML has grown and developed hand in hand with Scottish Widows Bank and its definitely been a win-win partnership.
“When we first started work with them, HML had just 15 clients and 2bn of assets. Were 16 times the size now.
“Weve also come a long way in terms of product development and technical capabilities we now handle more than 9,000 different mortgage products, and have successfully come through many hoops such as the Millennium issue and Mortgage Regulation, to name but ten.
“Were naturally sorry to see Scottish Widows Bank move on, but the relationship and mutual respect between the two companies remains as strong as ever.”