Barclays Bank and Global Home Loans Limited, a joint venture between Barclays and Countrywide Financial Corp, today announced that they have reached an agreement under which Barclays will bring its mortgage processing operations in-house following the end of the companies existing contract, which expires in April 2006.
Under the terms of the agreement Barclays intends to license GHLs technology for three years. The companies have also agreed that Countrywide will acquire Barclays 30% interest in GHL.
The two companies will be working together closely to ensure a smooth transition for all customers and employees.
GHL staff working on or supporting mortgage processing for Barclays will remain in their current locations but will become Barclays employees on or before the expiry of the existing contract, and transfer under TUPE regulations. GHL staff members are represented by the trade union, Amicus, who will be fully involved.
Mike Rogers, managing director Barclays UK retail banking says: Further growth of our UK residential mortgage business is a strategic priority for the retail bank. The Woolwich, which is Barclays mortgage brand, is powerful and well recognised and we are investing heavily to deliver great product and servicing to customers. In support of this we have made a strategic decision to take direct control of our mortgage operations from product development through to sales, processing and beyond.
Simon Hinshelwood, chief executive officer of GHL, says: We have valued our relationship with Barclays, and we are committed to facilitating a smooth transition with them. Following Countrywides acquisition of the remaining stake in the joint-venture, GHL will be able to better leverage Countrywides deep mortgage lending expertise as we focus on building our mortgage business in the UK.