Northern Rock has announced it will be withdrawing its Together range of mortgages from 20:00 GMT tonight.
It was also revealed the Government’s proposal to nationalise the bank has been defeated in the House of Lords.
The lender is the latest to withdraw a combined personal loan and mortgage product following similar moves from Godiva, Abbey and Alliance & Leicester.
Northern Rock claimed that demand for the product had fallen to a negligible level and so it has decided to withdraw it.
However, Northern Rock’s published half-year accounts suggest the deal had been popular, with around 24% of its borrowers opting for a Together mortgage.
The news means BM Solutions is now the only lender offering a 125% mortgage product.
Meanwhile, the Government’s proposed nationalisation of the Rock has been blocked by the House of Lords, who voted against several parts of the bill.
The Lords voted against the suggestion the bank should be exempt from the Freedom of Information Act, and say the bank should be regularly examined by the Office of Fair Trading.
Peers also demanded the bank be fully audited within three months, followed by annual auditing procedures.
The bill will now return to the House of Commons, where MPs can vote to accept the amendments or to reject them.
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First mentioned in Cridland Report
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