The mortgage lender is still a safe haven for credit, experts at brokers have said.
People considering applying for mortgages with HBOS should go ahead and do so, brokers have said.
According to industry analysts contacted by the Observer newspaper, mortgage and loan deals should be applied for despite the firm's recent widely-reported financial troubles. HBOS was taken over by Lloyds TSB in a £12.2 billion deal last week, following a collapse in its share price.
HBOS lost around 80 percent of its market value from the beginning of the year prior to the takeover, with investors concerned about whether it had enough access to funding in the credit crunch. In part, it also fell victim to negative sentiment about the financial sector as a whole over the past week - with US investment banks Lehman Brothers and Merrill Lynch both closing.
However, with the firm merged with its rival - and, therefore, with a new UK "super-lender" covering around a third of the entire market now to be created - Ray Boulger at brokers John Charcol told the newspaper that the bank was safe to take out a mortgage with.
"Borrowers have absolutely no reason to panic," he commented. "HBOS will continue to honour mortgage promises already made."
David Hollingswoth at fellow brokers London & Country added: "I do not envisage that HBOS will turn around and say 'we're not going to do this deal any more' - and if you are an existing borrower, the merger will have no impact on your mortgage at all."
