Woolwich is teaming up with US home loan provider Countrywide Credit Insurers in a move which could see the bank slash the cost of its mortgages.
The joint venture could result in Woolwich offering cheaper more flexible products based on US style 25 and 30 year fixed-rate mortgages.
It also says the move will enable it to cust the cost and increase the speed with which it is able to process mortgages.
The venture will see Los Angeles based Countrywide take over the management of Woolwich's ten processing centres and service the bank's existing mortgage business.
The American company which specialises in producing automated processing systems services mortgages in the US at twice the rate of Woolwich. It has been eyeing a move into the UK market for two years.