Computershare, the company that operates the Deposit Protection Service, has won the contract to undertake the mortgage servicing for UK Asset Resolution.

Around 1,700 UKAR staff will transfer to Computershare as part of the seven-year contract, which is expected to start shortly.

Computershare will be the largest third-party mortgage servicer in the UK and Ireland, managing £30bn of loans.

UKAR was set up to take on the loans of collapsed lenders Northern Rock and Bradford & Bingley.