Merger 'could be bad' for secured loans seekers - Loans - News - Moneyfacts


Merger 'could be bad' for secured loans seekers

Merger 'could be bad' for secured loans seekers

Category: Loans

Updated: 31/10/2008
First Published: 03/10/2008

This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

The potential merger of Lloyds TSB with HBOS could have negative effects for consumers, it has been suggested.

According to the Centre for Economics and Business Research, an acquisition would remove many of the secured loans offered by HBOS from the market.

Senior economist at the consultancy Charles Davis stated: "In terms of mortgage lending HBOS are the leading mortgage lender in the UK. You are removing one of the market leaders who have contributed to keeping prices down and providing cheap credit to consumers."

Speculation about the possible merger has been rife since the middle of last month, when it was announced that Lloyds TSB wished to take over the struggling bank.

The chairs of both companies backed the move, with HBOS head Dennis Stevenson recommending that shareholders vote in favour.

Yesterday HBOS shares dropped by 14 per cent amid speculation that the deal would in fact not go ahead.

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

Related Articles

Get a record low rate loan - if you qualify

Competition in the personal loans market is as hot as ever, so much so that one loan provider has slashed rates to the lowest on record – but only to those who fit the bill. The shopping bill, that is…

Competition returns to loans, but stalls in cards

Our recent figures reveal a mixed picture in terms of unsecured lending, as while competition appears to have returned to the loans market, it’s notably slowed in the credit card sector.

How to improve your credit score

Are you thinking about applying for credit? If so, you need to make sure your credit score is in order.