Lloyds selling branches and Intelligent Finance to The Co-op....good or bad??

deedee71

My mortgage is with IF and I'm currently on their very good SVR of 2.5%.

The Co-op have now been announced by Lloyds as their preferred buyer for the Verde Project which is the sell off of lots of branches plus the IF mortgage business.

Just looking for thoughts on whether this will be a good or bad thing particularly in regard to future mortgage products as I've never thought of the Co-op as a major player.

ETA:- Just looked and the co-op SVR is 4.24%....doesn't look good for me I think.

Thrugelmir

In a broad sense good. Too many mutual lenders have become banks in the past 20 years. So to see business heading the other way is a major plus for financial services in the UK.

hillcats

Any links please?

deedee71

This is the announcement.....

14 December 2011
LLOYDS BANKING GROUP ANNOUNCES PREFERRED BIDDER FOR EC MANDATED BRANCH DIVESTMENT (VERDE)
Lloyds Banking Group today announces that, having further reviewed the formal offers for its EC mandated retail and commercial business divestment (Verde) the preferred option is a direct sale and the preferred bidder for the business is The Co-operative Group.

Lloyds Banking Group will now progress more detailed exclusive discussions with The Co-operative Group, with the aim of agreeing heads of terms by the end of Q1 2012. The Group will continue to progress an Initial Public Offering (IPO) during this phase of the discussions.

Tim Tookey, Interim Group Chief Executive and Group Finance Director, said: "We are pleased to be reporting progress with the Verde divestment which continues to move forward in line with our expectations. I am confident that we will complete the transaction by the end of November 2013, in line with the EC mandated timescale."

This is subject to regulatory approval.

opinions4u

deedee71 wrote: »

My mortgage is with IF and I'm currently on their very good SVR of 2.5%.

The Co-op have now been announced by Lloyds as their preferred buyer for the Verde Project which is the sell off of lots of branches plus the IF mortgage business.

And the IF savings business too.

At the end of the day the terms and conditions which deliver your SVR will remain unaltered.

Just looking for thoughts on whether this will be a good or bad thing particularly in regard to future mortgage products as I've never thought of the Co-op as a major player.

ETA:- Just looked and the co-op SVR is 4.24%....doesn't look good for me I think.

But if it's other products you are looking for, the SVR isn't your prime motivator. Although I've not looked at their current range, Co-op have delivered a number of competitive fixed rates over the last couple of years and have often offered a 5 year fix at 3.99% or a bit lower.

But don't expect them to automatically offer IF customers the choice of Co-op mortgages. Things might well stay as they are for some time before they rationalise platforms, so you may need to go through a full remortgage process to change, much as you would have to today.

deedee71

I'm no so sure opinions4u. When Lloyds first took over all IF mortgage holders were offered the choice of switching to Lloyds products. Then about 6 months later that was all taken away when it came to light the mortgage business was being sold.

liubeliu

I am assuming that you will be able to join the co-op members rewards scheme.

deedee71

liubeliu wrote: »

I am assuming that you will be able to join the co-op members rewards scheme.

I already have a co-op card for grocery shopping. Is that the same scheme?

liubeliu

You get a annual cash benefit or vouchers to spend in co-op. value linked to size of mortgage, other current or savings accounts held etc