Borrowers are being warned that the recent turmoil in the British financial markets could lead to a rise in the cost of remortgaging . Commentators are warning that as a consequence, the cost of a typical £200,000 home loan could rise by as much as £600 a year. It is feared that the recent merger between HBOS and Lloyds TSB may remove an element of competition in the personal loans market. Savills Private Finance has suggested that lenders will react to the merger with an increase of 30 percentage points on their deals, resulting in the cost of a typical £200,000 home loan rising by as much as £600 a year.
The past week has seen Lehman Brothers collapse and insurance giant AIG needing to be rescued, whilst the merger between Britain’s largest mortgage lender – HBOS, and the fourth largest – Lloyds TSB, who also own Cheltenham and Gloucester .
Moneynet’s Andrew Hagger said: 'We are waving goodbye to an element of competition in the personal-finance market. Consumers will face a far more limited choice on the back of this merger and the previously announced Abbey takeover of Alliance and Leicester'.
Loan Repayments May Rise Following Merger
Loan Repayments May Rise Following Merger
Mon, 22 Sep 2008
Recommended links
The Essential Personal Loans GuideLoan Application Form
Unsecured Loan Deals
Cheap Loan Offers
Bad Credit Loan Lenders
Abbey to Cut Interest Rates on Selected Loans
Shop Around for Car Finance, Expert Urges
| Personal loans news |
|---|
| Majority of first-time buyers unable to get a personal loan - Mon, 04 Apr 2011 |
| Reduce loans by paying off credit card debt with biggest interest rate first - Tue, 29 Mar 2011 |
| First-time buyers to get 20 per cent deposit loans - Thu, 24 Mar 2011 |
| More News |
Paying Too Much?
7 out of 10 people are paying too much for their mortgage. To find out if you're one of them click here or fill out a FREE no obligation enquiry form