DLA Piper has advised the Co-operative Bank on an agreement with leading outsourcing group, Capita, to manage the Bank's mortgage processing operations for its Platform, Britannia and Co-operative Bank mortgage brands.

The transaction forms part of the Bank's strategy to transform the existing mortgage servicing operations of more than 200,000 Co-operative Bank mortgage accounts equating to lending of £20 billion. This will improve the experience of those mortgage account customers, whilst at the same time support the Bank’s plans for business growth in mortgages.

Steve Wright, outsourcing partner who led the DLA Piper team, said: "This was a strategically important and transformative project for the Co-operative Bank, which will help it to implement more efficient processes, whilst delivering an improved service to its customers. It was a pleasure to work with the Co-operative Bank team on this project and we wish them all the best in its implementation."

Capita will also acquire Western Mortgage Services (WMS) Limited, the Bank’s third party mortgage administration business based in Plymouth, and take over its mortgage processing and administration operations, which are predominantly based in Leek. Through WMS, Capita will provide services to the Bank from 1 August 2015.

Capita will install new systems designed to drive efficiency using both digital technology to simplify the processing of mortgages within a regulated environment and customer analytics and insight to continue to enhance customer service.

The DLA Piper team was led by outsourcing partner Steve Wright with senior associate Luke Stubbs and associate David Booth. Partner Elia Montorio, with legal director Ciaran Stone and associate Ben Holguin led on the disposal of WMS, alongside legal director Tom Kelsall who led on real estate aspects, alongside legal directors Helen Hall on HR and Stephen Jones on tax.