HBOS applications slump
HBOS's plans to to retain its existing borrowers has not been a success, amounting to a loss to the company of 12pc of the market share. HBOS is Britains biggest lender, it owns Halifax and Bank of Scotland, saw its share price fall by 4pc to £10.31. The policy to narrow the gap between new and existing borrowers was a flop as it did not encourage their clients to stay with them further or attract new customers through competitive rates.
The bank has now switched back to its traditional method and is actively trying to entice new borrowers with low interest rates. HBOS will encourage mortgage intermediaries to retain its existing borrowers by paying a retention bomus. The group is confident it will see its earnings grow by 10pc this year. | 
