With news this last week about the Lloyds TSB £12.2 billion takeover of HBOS, those applying for mortgages would understandably be concerned over their mortgage applications. However experts say that there is nothing to fear about the takeover, if you’ve been offered a good mortgage deal you should feel assured in going ahead.
Mortgage expert Ray Boulger, who works with broker John Charcol says:
Borrowers have absolutely no reason to panic. HBOS will continue to honour mortgage promises already made.
Another mortgage expert, David Hollingworth, with the mortgage broker London & Country says the same:
I do not envisage that HBOS will turn around and say “we’re not going to do this deal any more” – and if you are an existing borrower, the merger will have no impact on your mortgage at all.
The Halifax cut some mortgage rates in the last week, which it would not have done had it been in real financial trouble. It has also reduced the rate on its 5 year fixed rate deal, offering a rate of 5.85% with a £999 borrower’s fee. The week before they were offering 6.09% with a £499 fee.