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Northern Rock and Lloyds TSB in Cahoots
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Northern Rock Sign Mortgage Deal with Lloyds TSB
Writes Dan Drage dan.drage@consumerchoices.co.uk
Government owned high street lender Northern Rock has found a mortgage solution in the shape of Lloyds TSB.
Northern Rock (www.northernrock.co.uk) and Lloyds TSB (www.lloydstsb.com) have come to an agreement over mortgage customers who are reaching the end of their fixed rate deal with Northern Rock. Effectively, they will be encouraged to switch their mortgage to Lloyds TSB.
Selected customers will be targeted by Lloyds TSB, and those who switch from Northern Rock will have the standard application fee waived. Lloyds TSB will pay a commission to Northern Rock for each customer who switches.
Customers will not be forced to switch to Lloyds TSB and alternatives such as the Northern Rock variable rate mortgage will be granted.
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"Lloyds TSB will pay a commission to Northern Rock for each customer who switches"
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Since nationalisation, Northern Rock has declared its intention to shed borrowers from the books. In April of this year, freshly installed Rock chief Ron Sandler articulated his intention to encourage 60% of all borrowers to move elsewhere, more than halving the Northern Rock loans roster.
The deal between Lloyds TSB and the Northern Rock will last for three years.
Chris Eagle, Commercial Manager at Credit Choices, had the following to say:
"Northern Rock customers should think carefully before moving over to Lloyds TSB, and check the terms and conditions of Lloyds TSB’s mortgage products before any potential switch takes place"
He continues:
"Similar products such as the HSBC (www.hsbc.co.uk) ‘Rate Matcher’ are available, and these products may be more beneficial to you."
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