AROUND 1,700 staff at Crossflatts-based UK Asset Resolution will have a more secure future following a government deal to outsource their work, it has been claimed.

UKAR, the state-owned bank behind failed lenders Bradford & Bingley and Northern Rock, has signed a contract to transfer mortgage servicing operations to Computershare.

The deal, which is expected to complete in the summer, follows a process which started in June last year when a short list of potential bidders was drawn up.

UKAR said the seven year contract covering £30 billion of mortgages would enable it to undertake more asset sales and continue to reduce the Government debt - for which it was established in 2010.

The company said the deal would ensure that UKAR’s existing mortgage processing capabilities remain robust and provide stability and continuity of service to customers.

It would also help safeguard jobs as staff transferring to Computershare were joining a company with the ambition to grow.

Customers will continue to have their mortgages serviced with no changes to their terms and conditions.

Around 1,700 staff based at Crossflatts and in Sunderland will transfer to Computershare under TUPE arrangements.

UKAR will retain the remaining 250 employees to continue managing the balance sheets of NRAM and B&B and and administer the Government’s Help to Buy Mortgage Guarantee Scheme and Help to Buy ISA.

Richard Banks, UKAR chief executive, said:“Today’s announcement is great news, made possible because of the exceptional debt management and customer service capabilities that UKAR has developed. Working with Computershare provides stability of service for our customers and enables UKAR to focus on maximising value for taxpayers.”

The deal will make Computershare the largest third-party mortgage servicer in the UK and Ireland.