Lloyds TSB is to take on Northern Rock's fixed-rate customers under a new three-year partnership.
Under the terms of the agreement, selected Northern Rock customers reaching the end of their fixed-rate deal will be given the option of switching to one of Lloyds TSB's fixed-rate products.
The agreement will allow Lloyds TSB to accelerate new business growth in a low risk manner while assisting Northern Rock towards its goal of reducing the size of its balance sheet.
Helen Weir, group executive director of UK Retail Banking for Lloyds TSB, says: "The agreement offers Northern Rock customers a fast-track process to switch mortgage providers.
“Crucially, it will greatly reduce the uncertainty involved for customers who choose to switch providers and give them peace of mind in the current uncertain market conditions."
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