HBOS and Lloyds TSB mortgage and savings comparison
Michelle Slade, analyst at Moneyfacts.co.uk, comments:
Following on from the announcement that Lloyds TSB and HBOS are in talks over a possible merger. Attached is a comparison of some of the key mortgage and savings products.
Mortgages
Lender |
2 Year Fixed (75% LTV) |
2 Year Variable (75% LTV) |
SVR |
||
Rate |
Fee |
Rate |
Fee |
||
Bank of Scotland |
5.65% |
£1,499 |
5.70% |
£999 |
7.35% |
BM Solutions |
5.84% |
0.50% |
5.59% |
1% |
7.44% |
Cheltenham & Gloucester |
5.49% |
£2,094 |
5.59% |
£2,094 |
7.00% |
Halifax |
5.72% |
£1,499 |
5.59% |
£1,999 |
7.00% |
Intelligent Finance |
5.94% |
£999 |
5.74% |
£1,999 |
7.00% |
Lloyds TSB Scotland |
5.49% |
£2,094 |
5.59% |
£2,094 |
7.00% |
Source: Moneyfacts.co.uk 17.9.08 |
|||||
“If the merger goes ahead, the consolidated company will have nearly 30% of the UK mortgage market.
“Halifax and Cheltenham & Gloucester are both major and well known brands in the UK and it is unlikely that these brands will disappear. By keeping at least the majority of the current brands, the new group will likely maintain a hold over their mortgage market share.
“It is likely that each brand will maintain its presence and serve its own niche within the mortgage market.
Savings
Provider |
Cash ISAs (£3.6K) |
1 Year Fixed Rate Bonds |
Birmingham Midshires |
6.00% |
6.70% |
Cheltenham & Gloucester |
4.50% |
Not available |
Halifax |
5.00% |
6.00% |
Intelligent Finance |
5.10% |
Not available |
Lloyds TSB |
4.60% |
5.50% |
Source: Moneyfacts.co.uk 17.9.08 |
||
“It is difficult to compare the savings products of the HBOS and Lloyds TSB companies as each brand has different terms and conditions which stops us from comparing like for like, particularly between instant access accounts.
“Cheltenham & Gloucester and Lloyds TSB do not really actively compete in the savings market and their rates are far less competitive than the HBOS brands. It is therefore possible that the consolidated company will greatly reduce the number of brands and products compared to what the existing companies currently offer.
“As more and more companies enter into mergers, we inevitably start to worry about a lack of consumer choice. If one provider has a major hold in any aspect of a market, it results in consumers being worse off.”
Moneyfacts Group
Moneyfacts is the UK’s leading independent provider of personal financial information and our data is used and trusted throughout the financial industry.
Think carefully before securing other debts against your home, your home may be repossessed if you do not keep up repayments on your mortgage.
Go Direct.co.uk is a trading style for website purposes of Go Direct UK Ltd.
Go Financial Services is a trading style of Go Direct UK Ltd which is an appointed representative of Personal Touch Financial Services Ltd which is authorised and regulated by the Financial Conduct Authority. Registered in England & Wales Company 5703224. FCA Number 456600
We normally do not charge a fee for mortgage advice, however this is dependent on your circumstances. Our typical fee would be £349