Hi Lisa,

This is the report I read about the Lloyds TSB/Northern Rock partnership...

Lloyds TSB has entered into a three year agreement with Northern Rock, whereby borrowers coming to the end of fixed rate periods on Northern Rock mortgages will be offered the opportunity to switch to a Lloyds product.

As the borrower approaches the end of their deal – and on the basis they meet certain criteria - Northern Rock will write to them, giving them the opportunity to apply for a Lloyds deal.

Those borrowers that do switch to a Lloyds product will benefit from free legals and valuation work, and a waiver of the application fee.

The new process will commence from July. Northern Rock claims the deal will require 100 existing staff who might otherwise have been at risk of redundancy.

Ron Sandler, executive chairman of Northern Rock, said: “We have already reported solid progress against our business plan, including meeting our planned target for mortgage redemptions, as we continue to repay the Bank of England facility. This new agreement with Lloyds TSB improves our ability to manage our mortgage redemptions and I am delighted that it has been concluded.”

The only thing I would say is that it offers a LTSB product which may not go to the LTV you want, but it is worth asking them the question anyway, it seems like it may be a good idea.

Regards,

Adey

Hi LisaH,

I read about Lloyds TSB helping out Nothern Rock on the intranet at work today (I work for LTSB), only briefly as I was coming back off of lunch. If I remember rightly, the customers that are eligible for the offer from Lloyds TSB will be contacted in writing, and given instructions on how to apply if they wish to. I believe I saw some contact numbers for customers whom ring up enquiring about this as well. If they're there on there, I will make a note and report back tomorrow once I've fully read the memo.

Hi Lisa...you can of course source your own mortgage but for you to trawl the entire market would take you weeks whereas an independent broker can do it in 10 minutes. If the only fact stopping you using a broker is a fee, find one that doesn't charge one. The news about Lloyds being available to NR customers was just announced to brokers today and hopefully we will be able to assist these customers, you can call NR to see how to apply directly, but hang fire for some more updates.

How would I find out about this deal and if we are eligible for it? Also, is it better to go it alone rather than use a broker, can you find better deals out there that way?

Hi Lisa....Northern Rock have unveiled a plan for Lloyds TSB to be able to assist with NR borrowers when they come out of their existing deal. Early announcement but maybe something to ask about???

Hi Lisa,

Take the Nationwide deal and stick with Northern Rock for the unsecured element (which will rise to about 16%) IF the total cost is cheaper than staying with Northern Rock on their Standard Variable Rate. I would suspect it will be as you will only be keeping £3,500 at 16%-ish, and your mortgage will be at a lower figure than the SVR.

Regards,

Adey

I was with Northern Rock and then my fixed rate finished I went on to variable rate, they would not offer me an alternative. I have had a financial Advisor help me since November last year....and I could not get a mortgage nor a remorgage anywhere, even though I had equity on my house. The outcome is that I could not afford the morgage payments and have just sold my home to a buy to let company, and yes my house was undervalued by them but this is the only way I can stay in my house...The good outcome is that i can buy my home back in 5 years at the same value they have bought it for, and I have managable monthly payments. The state of affairs just now is that nobody seems to want to lend, they dont want the business after what has happened with NR, I think there are other people out there who have had to do the same as me...have heard it could take a year for this to recover and if you can afford to stay with NR then really it would be your best bet till things calm down. All the best.

Hi

My husband and I took out the 100% together mortgage with northern rock 2 years ago. Our fixed rate is due to end at the end oof july - talk about bad timing! We went to our FA and decided to go with first active - they valued our house £1k less than we paid for it 2 years ago! Now we've gone with Nationwide, they valued it at £4k more, but will only lend us 90%, leaving us £3,500 short. The FA has advised us to take this, transfer the mortgage and some of the unsecred NR loan, leaving £3500 with NR on their personal loan rate. This is not really something I want to do, but as nobody is offering 100% anymore and the trouble with the valuations we have had, I don't really see an alternative. Has anyone had a similar situation(I imagine there must be a few in the same boat!) and what the hell can I do?! Aside from sticking with NR after the fixed rate for a couple of months and see if things improve, or going to see other FA's, but we havent got much time, I just don't know! Help me!!!!

Lisa