A broker, who wished to remain anonymous, told Mortgage Introducer that a ‘high level’ individual at Northern Rock had called him on 18 February asking if he would be interested in having remortgage information on their clients.
The broker said that Northern Rock did not want the business, but wished to see its clients remortgaged to other lenders.
The source said: “This is the first time ever I have had a lender ring me up offering such information. As for the question of whether Northern Rock is going to move forward with the business or downsize instead, well that’s the answer isn’t it?
"I think it’s a world first being offered the information, especially when lenders are usually so reluctant to share. It’s not often you get the opportunity to go out and take them.”
David Hollingworth, head of communications for London & Country, also confirmed that it had enagaged in ‘a brief discussion’ with Northern Rock on the matter.
He said: “Northern Rock is understandably looking at all ways it can help alleviate its situation and at the same time help its customers. As a long-term business partner we would, of course, be willing to explore ways in which we can work together to mutual and consumers’ benefit.
“It seems to be looking to not retain customers, which is a sharp turn around on what it has said. It definitely is not going to carry on business as normal – it is not an option and the lender is not pricing to retain business. It’s inevitable that the mortgage book will be run down.”
A spokesperson for Northern Rock commented: “This is all part of our previously stated intention to reign back on our lending. We have also sent out a mailing to our customers, because we feel it’s only fair to point out that there are probably better deals out there.
"We are considering our position, obviously having been taken into nationalisation, but we don’t want to comment in detail right now.”
