Savings Management is to be brought under the management control of sister company Homeloans Management.
HML managing director Steve Haggerty, who is already on the board of SML, will take over as managing director, and operations director David Grant will run both companies.
Both companies are based in Skipton, North Yorkshire, and are wholly owned by the Skipton.
HML administers the loans of more than 30 lenders currently worth more than £20bn, up by 82% over the end 2002 figure of £11.3bn.
The company says the change will enable SML to benefit from HML's experience of business process outsourcing over the past 15 years and will enhance the group's ability to develop state-of-the-art savings and mortgage products, including a new range of offset mortgage products.
Haggerty says: “HML is already a highly successful company in the business process outsourcing market and is expected to grow assets under administration by more than 80% in the current year.
“Following these changes, SML will benefit from the additional expertise and resources of HML, which now has more than 900 staff.
“Most important, it will strengthen HML's ability to meet clients' needs on both sides of the balance sheet – for both savings and lending products – as well as the offset mortgage.”
Existing customers of SML will continue to be looked after by the same operational staff to ensure continuity of service.