Lloyds TSB offer Northern Rock mortgagers a chance to jump ship
Published : June 2008
Lloyds TSB aim to capitalise on the Northern Rock fiasco by offering the wounded lender’s customers mortgage switches when their current deals run out.
Borrowers with at least 20 per cent equity on their property will be able to remortgage with Lloyds TSB’s mortgage arm, C&G, without paying the standard £99 application fee or paying valuation and conveyancing costs. Lloyds TSB will be writing to such borrowers as the end of their fixed terms approach.
The deal will between the two banks will run for three years from July and will save around 100 Northern Rock staff. The now government owned institution is looking to reduce mortgage customers after suffering the first bank run in a century last year. It expects 180,000 to leave during the deal period.
Customers who need to borrow over 80 per cent of their property value can still apply to C&G outside of the formal scheme but will not benefit from the waived arrangement fees.
Deals to be offered include a three-year fixed rate of 6.09 per cent and five-year at 5.99 per cent. C&G currently has a nine per cent share of the mortgage market.
