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29 Mar 2024
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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. 

 

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