Financial services stays at Vertex after division sell-off

Vertex has confirmed that its financial services business will be unaffected by a sell-off of its private sector division to Capita Group.

Capita has bought the division for £40.5m, which includes areas such as utilities and telecommunications, encompassing clients like Marks & Spencer and Scottish Power.

But a spokesman for Vertex has confirmed that financial services does not fall within its classification of private sector and that financial and public sector clients will be unaffected.

He says: “We are looking to focus on our financial services and public sector divisions so mortgage clients will not be affected by the sale.”

Some 1,400 employees in the UK and 200 support staff in India from Vertex’s private sector business transfer to Capita.

Last month Vertex’s UK residential mortgage primary servicer ratings of RPS2-sub-prime and RPS2-prime were placed on rating watch negative by Fitch after DB Mortgages transferred the servicing of its £1.6bn mortgage book to Target Loan Servicing.

The former sub-prime lender will transfer its mortgage book by November 2012, which makes up roughly 60% of Vertex’s portfolio.
Vertex’s remaining three clients represent 8,700 loans, estimated to be worth £1.1bn.