The merger between Lloyds TSB and HBOS may prove detrimental to mortgage borrowers who have benefited in the past from differing ranges from the lenders, according to market analysts.
The deal will create the UK’s largest mortgage lender, with a market share of almost 30%, and normal competition rules have been waived to prevent a collapse in the banking system. However, such a large entity, already being dubbed a ‘superbank’, could prove to be anti-competitive and harm consumers. Andrew Hagger from Moneynet.co.uk, says the two banks have offered quite different mortgage ranges in the past. Lloyds TSB has traditionally been quite cautious with its lending, generally offering higher rates than its former rival, while HBOS has frequently appeared in best-buy tables with...
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