UP 600 new jobs are to be created for people in East Lancashire after a company announced massive expansion plans.

Skipton-based Homeloan Management Limited (HML), a provider of mortgage administration services, has bought 20,000 square feet of new premises at Shuttleworth Mead in Padiham.

The move comes after it signed a new contract with mortgage lender, GMAC-RFC, part of the General Motors group of companies.

The contract has the potential to double the turnover of HML during the next five years and has led to the company needing the new premises to meet the initial expansion. HML, formed in 1988, is also negotiating to build a further 30,000 to 50,000sq ft building on the same site to cater for anticipated growth.

It is expected the workforce in Padiham could reach 600, similar to its current workforce in Skipton.

Rita Walsh, secretary of the Burnley and District Chamber of Trade, said: "It's a gift for Padiham and couldn't go to a better place. Shuttleworth Mead is so well placed it will benefit people in Blackburn, Hyndburn and Rossendale, as well nearer to home.

"It's just what we need, permanent full-time jobs with skilled people to fill them. It's the most marvellous news for Padiham in a long time. I'm sure that in Padiham tonight when people read about this in the newspaper there will be some rejoicing."

HMLs clients include banks, building societies, insurance companies and specialist lenders who benefit from a full range of tailored mortgage administration services from initial enquiry through to shortfall debt recovery.