Under a three-year agreement, those coming to the end of a fixed-rate Rock home loan can apply for a similar product from Lloyds TSB.

The latter nearly bought Northern Rock last year after the former building society was brought near to collapse. It was subsequently rescued by the Govern­ment.

About 180,000 Rock customers are due to come to the end of fixed-rate deals by 2011. Those eligible will be offered a fast-track application process by Lloyds TSB, which said it would waive its usual £99 ­application free and offer free legal and valuation work.

Northern Rock chairman Ron Sandler said the tie-up would safeguard 100 jobs which will be moved to a dedicated switching service.

He said it was consistent with his aim of repaying the £24.1billion owed to the Bank of England by reducing the size of Rock’s mortgage book.

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