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HBOS is set to follow Rock with FTB deal

The UK’s biggest lender says it is interested in replicating the product but is not comm-itting to any timescale for launch and has not finalised under which brand it would be offered.

Brokers stress that when-ever the HBOS offering is launched, it may force rates down due to the increased competition.

Together has been a major success for Northern Rock since its launch in 1999 and has accounted for 33 per cent of completions by the lender so far this year.

Brokers were told of HBOS’ plans at a meeting of the lender’s key accounts two weeks ago but it is understood those brokers it is closest to have known of the plans for a while.

HBOS intermediary distribution and specialist banking managing director Philip Grant says: “There is clearly a strong market opportunity and we are looking at whether that area represents an opportunity for HBOS.

“It is a very interesting product that Northern Rock has and it holds a very strong position and it looks to be a great solution for the FTB and it is clearly a major driver for Northern Rock’s position in the market,

“We are interested in interesting things. We will decide the appropriate brand as and when it happens. When and if we decide there is opportun-ity, we will move quickly.”

Hamptons International Mortgages technical director Jonathan Cornell says: “Someone like HBOS could do a lot of business with this product. Northern Rock has been very successful but the prices have been high because there is not much competition so if someone come in then rates would have to come down.”

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