A statement from Northern Rock detailled that the decision had been reached 'by mutual consent'.
Northern Rock had been originating SPML loans since April 2007. It attracted applications through its existing channels and processed them through to completion, with SPML servicing the loans. However the business was never written to the Company’s balance sheet.
Business must be submitted before the close of play on Monday 10 March at which point the products are to be withdrawn. Pipeline cases will be honoured.
This follows a rather strained period for Northern Rock which saw it nationalised by the government, the lender had been actively discouraging customers from remortgaging, outlining plans to reduce its mortgage lending back to just 1 per cent of its total business.
