Moneyfacts.co.uk: Northern Rock and Lloyds TSB agreement

Darren Cook, spokesperson for Moneyfacts.co.uk, comments: "It's about time the thousands of Northern Rock mortgage customers received some encouraging news that allows them to sleep a little better at night.

"The new mechanism to support customers transferring their mortgage to Lloyds TSB is a welcome move. It comes hard on the heels of the doubling in size of Northern Rock's debt management team to assist those who don't meet Lloyds TSB's criteria.

"Current products from Lloyds TSB are only available for loans up to 90% loan to value. We are concerned how Northern Rock plans to deal with those of its customers with loan to values higher than this, some as high as 125%. Their deals may not be coming to an end quite yet, but if they are forced to switch to a standard variable rate deal, the toll on their finances could be severe."