moneysupermarket.com: Northern Rock and Lloyds TSB agreement

Commenting on Northern Rock’s agreement with Lloyds TSB, Louise Cuming, head of mortgages at price comparison site moneysupermarket.com said: “This may be good news for some Northern Rock borrowers, but the Lloyds TSB deal will only be offered to a select tier of customers. Lloyds will undoubtedly cherry pick Northern Rock’s ‘prime’ borrowers and anyone who doesn’t make the grade will find themselves part of a growing ‘borrowing underclass’. These people will face an uphill struggle to find an affordable mortgage when their fixed rate deal comes to an end.

“Customers who are eligible for a Lloyds TSB deal should shop around before making a decision. It can be easy to follow the path lenders set out, usually by renewing your mortgage and here, by joining Lloyds’ books. However, this could work out considerably more expensive. Given the sums of money involved in a high inflation environment, taking some time to search for the best deal is vital. I would advise any Northern Rock customers to check the whole of the market before opting automatically for the Lloyds’ deal.”