Up to 250 jobs are set to be created by American company Alltel Mortgage Solutions Ltd at its new European base in Bingley.

The company moved into the Bradford & Bingley's offices in Main Street in the summer and hopes to create the extra jobs in the new year.

Earlier this year the Bradford & Bingley was involved in a joint venture with Alltel which saw it take a 25 per cent stake in the American company.

Alltel, based in Little Rock, Arkansas, has more than 25,000 employees and is the largest US provider of software and processing services to firms providing residential mortgages.

Philip Tolchard, Alltel's chief operating officer, said: "It's our intention to base our operations in Bingley and as we get more clients we will be taking on more staff.

"We have 600-650 employees there at the moment and that building might house 800-900.

''I think we will be looking to make a major expansion at the end of 2001. The kind of jobs that will be available will be predominantly clerical, administrative and management."

Alltel managing director Nick Woodcock said: "The United Kingdom mortgage market is in a state of rapid change. Competition is increasing with new entrants launching highly competitive and very flexible products.

"Traditional lenders are having to respond rapidly to these new pressures. This new service will offer the traditional lenders a fast track to acquiring a fully functional and proven office operation which has delivered cost savings and increased competitiveness in the United States."

Six hundred Bradford & Bingley mortgage processing staff joined Alltel under the joint venture. Only a handful of Americans are among the company's Bingley staff but about 30 work there for several weeks at a time on temporary projects.

The Bradford & Bingley was its first customer with more than 350,000 loans to be processed.