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Lloyds TSB help Northern Rocks fixed-rate mortgages

08/06/2008


Lloyds TSB has helped Northern Rock throughout the last quarter of 2007, today the two struck a deal to switch thousands of its fixed-rate mortgage customers across to Lloyds.

Northern Rock will write to customers who are coming to the end of their fixed-rate deals, a £99 application fee will have to be paid for all new sign ups made with Lloyds.

Rock Customers will have the chance to stay with their lender however with their variable rate offer only. Over 180,000 fixed-rate Rock mortgages matured over the coming 3-years.

Ron Sandler, Rock chairman suggested the mortgage deal could save around 100 jobs, he added: 'This is a very positive development which improves our ability to manage our mortgage redemptions.'

A plan for Rock to succeed has come under fire by the European Commission team, they claimed the business could be reduced in size faster and the Bank of England emergency loans could be repaid sooner.

A vast majority of borrowers also decided to purchase Rocks shares, assuming there would be an increase after Lloyds idea of a turn round.

 


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