RSS FeedsLloyds TSB to take over home loans from Northern Rock
06/06/2008
Lloyds TSB is due to take over home loans from Northern Rock. Lloyds TSB is the UKs fourth largest mortgage lender and it plans to help with the reduced number of mortgages being approved.
This agreement with the two financial organisations will help Northern Rock reduce the amount of loan it currently has and help in paying back the huge amount of the twenty-four billion pounds that it has lent last year from the Bank of England.
Mike Trippitt who is a London based analyst at Oriel Securities Ltd, which has a “buy” rating on Lloyds TSB stock said that, “This is an elegant way of picking up a reasonably steady flow of business, providing it can be properly risk controlled.”
Northern Rock announced earlier this year that it will be laying off around 2,000 employees which is around a third of its staff. It said today that with the agreement with Lloyds TSB that it will keep 100 employees for the new agreement.
Ron Sandler, who is the Chairman of Northern Rock said that, “This new agreement with Lloyds TSB improves our ability to manage our mortgage redemptions.” Sandler went onto say that “We have already reported solid progress in our business plan as we continue to repay the Bank of England facility.”
Helen Weir, Lloyds TSB consumer head said in a statement, “The agreement offers Northern Rock customers a fast-track process to switch mortgage providers. It 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.”