Lloyds TSB and HBOS Merger
Lloyds TSB and HBOS Merger has sent shockwaves throughout the financial system of the United Kingdom. While there was no doubt that the effects from the American sub-prime loan catastrophe would crash hard on the UK’s shores, a lot of people are concerned that it might affect more than the thousands of employees who could be laid off. So if you’ve got a mortgage with Lloyds TSB or HBOS, should you worry? How might this affect you?
First it’s key to understand what’s happening. HBOS has been caught in the sudden disappearance of credit worldwide as banks have pulled back capital in order to protect themselves from the mortgage crisis abroad. Without the ability to quickly borrow money, and with an unsure future, HBOS needed a way to shore itself up and ensure it had the funds necessary to meet it’s obligations to it’s customers. To do this, they sold themselves to Lloyds TSB.
For most customers, especially mortgage customers, the changes should be minimal. In the end, someone will still own your loan, and you will still be required to make payments. When the merger is complete, you should contact your bank and find out if your terms have changed. Odds are they haven’t, but your “new” lender may want to renegotiate terms.
It’s important to keep a cool head, and if you continue to keep tabs on your mortgage and make payments, you should be fine. Problems should only arise if you fail to make your normal monthly payments.
Remember, a change of lender does not let you eschew your obligations!
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