SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.20549
FORM 6-K
Report of Foreign Private Issuer
Pursuant to Rule 13a-16 or 15d-16
of the Securities Exchange Act of 1934
5th June, 2008
LLOYDS TSB GROUP plc
(Translation of registrant's name into English)
5th Floor
25 Gresham Street
London
EC2V 7HN
United Kingdom
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual
reports
under cover Form 20-F or Form 40-F.
Form 20-F..X..Form 40-F.....
Indicate by check mark whether the registrant by furnishing the information
contained in this Form is also thereby furnishing the information to the
Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
Yes .....No ..X..
If "Yes" is marked, indicate below the file number assigned to the
registrant in connection with Rule
12g3-2(b): 82- ________
Index to Exhibits
Item
No.1 Regulatory News Service
Announcement, dated 5th June,
2008
re: Lloyds TSB announces Mortgage Agreement with North
LLOYDS TSB
ANNOUNCES MORTGAGE AGREEMENT WITH NORTHERN ROCK
Lloyds TSB announced today that
it has entered into
a
three year agreement with Northern Rock whereby certain
Northern Rock
mortgage customers approaching
the end of their fixed rate period will
be offered the opportunity to switch
to a Lloyds TSB mortgage
1
.
The agreement with Northern Rock
is
consistent with
Lloyds TSB's strategy of building its core franchise and
deepening relationships with customers. It will allow Lloyds TSB to accelerate new
business growth in a low ri
sk manner while assisting Northern Rock
towards its goal of reducing the size of its balance
sheet.
Commenting on today's agreement, Helen Weir, Group Executive
Director, UK Retail Banking for Lloyds TSB said; "This transaction is great news
for all the parties involved and is an innovative example of how we continue to
deliver on our organic growth strategy and maintain the high quality of our
mortg
age book.
"
T
he agreement
offers Northern Rock customers a fast-track process to switch
mortgage providers. Crucially, it will greatly reduce the uncertainty involved for
customers who choose to switch providers and gives them peace of mind in
the
current
uncertain market conditions. As Lloyds TSB customers they will
also have access to the full range of products and services available from
the
UK
's leading financial services provider."
Under the terms of the agreement, selected Northern Rock
customers reaching the end of their fixed rate term will be given the option of
switching to one of Lloyds TSB's competitively priced fixed rate products
. Northern Rock customers who do choose to switch to Lloyds
TSB will benefit from
free legal and valuation work
2
and a waiver of the standard application fee
3
.
Those customers who are offered the option to switch to a
mortgage from Lloyds TSB, but choose not to, can stay with Northern Rock on their
standard variable rate or look to the market or their broker for an alternative
mortgage deal.
For further information:-
Michael Oliver
+44 (0) 20 7356 2167
Director of Investor Relations
Leigh Calder
+44 (0) 20 7356 1347
Senior Manager, Media Relations
1 Subject to Lloyds TSB normal terms & conditions
2 Subject to standard exceptions
3 Standard application fee of £99
Six easy steps for Northern Rock customers:
-
Customer receives letter and brochure and chooses the
mortgage deal in which they are interested.
-
Customer returns the coupon at the end of the letter
or calls Northern Rock to start the switching process.
-
Customer is sent an illustration showing the monthly
payment and key facts about the mortgage deal.
-
If happy, customers call Northern Rock to ask them to
proceed.
-
If the new mortgage is approved, Cheltenham &
Gloucester* sends a mortgage loan agreement and mortgage deed to the
customer.
-
Customer signs and returns documents and process
completes.
* Cheltenham & Gloucester plc administers mortgages on
behalf of Lloyds TSB
FORWARD LOOKING STATEMENTS
This announcement contains forward looking statements with
respect to the business, strategy and plans of the Lloyds TSB Group, its current
goals and expectations relating to its future financial condition and
performance.
By their nature, forward looking statements involve
risk and uncertainty because they relate to events and depend on circumstances that
will occur in the future.
The Group's actual future results may differ materially
from the results expressed or implied in these forward looking statements as a
result of a variety of factors, including UK domestic and global economic and
business conditions, risks concerning borrower credit quality, market related risks
such as interest rate risk and exchange rate risk in its banking business and
equity risk in its insurance businesses, changing demographic trends, unexpected
changes to regulation, the policies and actions of governmental and regulatory
authorities in the UK or jurisdictions outside the UK, including other European
countries and the US, exposure to legal proceedings or complaints, changes in
customer preferences, competition and other factors.
Please refer to the latest Annual Report on Form 20-F filed
with the US Securities and Exchange Commission for a discussion of such
factors.
The forward looking statements contained in this
announcement are made as at the date of this announcement, and the Group undertakes
no obligation to update any of its forward looking statements.
Signatures
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has
duly caused this report to be signed on its behalf by the undersigned, thereunto duly
authorized.
LLOYDS TSB GROUP plc
(Registrant)
By: M D Oliver
Name: M D Oliver
Title: Director of Investor Relations
Date: 5th June, 2008