Future outsources to innovate

Future Mortgages has signed a £10m outsourcing agreement with Homeloan Management covering the next three years.

Under the deal, HML will take care of the post-completion administration for Future loans. This includes the handling of telephone queries, payment collection and issuing statements.

The new contract replaces separate agreements between HML and Citigroup subsidiaries Future Mortgages and Associates Capital Corporation. Following acquisition in 2001, Future absorbed the mortgage intermediary division of Associates. Now the two outsourcing contracts are being merged into one full third-party administration service for the combined business.

Brian Pitt, sales and marketing director at Future, says: “Future has ambitious growth plans for its UK mortgage business and it is critical for us to find the right solution at the right price.”

By outsourcing administration, Pitt says Future can concentrate on product innovation at the front end.

He adds: “By servicing back-end business externally we can drive front-end business more efficiently in terms of product design, cost analyses and sales and marketing. HML is so flexible that it can manage the back-end of a new product with just a few days notice.”

The outsourcing deal also offers Future significant cost savings. Pitt says: “There is a trend to outsourcing in the market generally because it is so expensive to run back end operations.”

Tim Fletcher, sales and marketing director of HML, adds: “This is a significant contract for us and allows Future to stay light on its feet. Rather than having their own processing capability, they&#39re benefiting from shared costs across client bases and economies of scale.”