Abbey National is linking up with Electronic Data Systems to provide post-sale servicing of Abbey's retail mortgages and personal loans.
Abbey says the deal will increase the range of flexible mortgages and enable customers to manage their loans through the internet and digital TV. It believes the deal will create the UK's biggest third-party administrator for lenders and will save it £9m a year.
The joint venture will undertake all post-sale servicing for Abbey's retail mortgages and loans but the bank will retain responsibility for dealing with arrears and debt management.
Abbey says the medium-term aim of the venture is to win business from other UK and European lenders, with the ultimate goal of becoming the leading third-party mortgage administrator in Europe.
Abbey managing director of retail banking Andrew Pople says: “This venture is good news for customers, with better service and a wider range of products.”
EDS president for business process management for Europe, Africa and the Middle East, Peter Clough says: “EDS brings its technology and business process management exper- tise to the new venture and Abbey brings its size, lending experience and excellent people.”