Capita agrees sale of Western Mortgage Services Limited’s mortgage servicing business assets

Capita plc entity Western Mortgage Services Limited (WMSL) has agreed terms to sell its mortgage servicing business assets to Topaz Finance Limited (the Buyer).

The sale is expected to complete in Q2 2025 subject to a number of operational completion conditions, and the staff and offices of the WMSL mortgage servicing business will transfer to the Buyer at completion.

The sale of the WMSL mortgage servicing business assets follows an evaluation that identified activities that are not core to Capita’s future strategy and are being ‘managed for value’. Capita's strategy to manage for value focuses on improving the financial performance of the Group by prioritising margin improvement, cash generation and revenue growth. As the WMSL mortgage servicing business was a non-core loss-making business in 2023 (2023 revenue £5.8m), it was decided to seek a buyer that is better able to develop the business, helping it reach its full potential.

The WMSL mortgage servicing activity is a complete outsourced mortgage administration service to providers of residential and buy-to-let mortgages, regulated by the UK Financial Conduct Authority. The business currently provides post-completion mortgage servicing and arrears management for several Special Purpose Vehicle (SPV) books.

Adolfo Hernandez, Chief Executive Officer, Capita, said: “Capita’s strategy is to become a more focused company, prioritising businesses where we can deliver material opportunities in the future, with greater simplification and cost reduction. The disposal of the mortgage servicing business is a positive step in our transformation journey, following the completion of the sale of Capita One in early September.”

Owned by Computershare, a global leader in financial services administration, Topaz Finance Limited is an experienced, UK-based mortgage lender and administrator supporting homeowners and buy-to-let landlords. Topaz Finance Limited has been operating since 2006 and is regulated by the Financial Conduct Authority.