The 4.95 USD (per month) is a special good for a few more weeks. Then it presumably goes back to the previous best price of 6.95 USD per month (both are for 24 months at a time). I can't tell you what payments in pounds via PayPal will be.

If you own a domain, you can leave it at another registrar and just point it to LP's nameservers to host at LP. Or, you can move it to LP (actually, Tucows, which LP is a reseller for) for a one-time small fee. On the basic plan, one domain name is free. Note that some disreputable hosts retain ownership of domain names (did you read the fine print?) and won't let you transfer them or even point them to another host. LP gives you ownership of your domain, whether it's the free one or a purchased one. Of course, if you later move your hosting elsewhere, you'll have to pay an annual fee if your domain was free under your hosting plan (or you can transfer your domain to another registrar).

I can't answer for LP's plans to raise or lower prices. So far for me (2.5 years) they've been steady or dropping (or more features for the same price). There's a lot of competition and price pressure in hosting, but eventually the market will mature and electrical cost increases will likely overcome dropping hardware prices. Who knows when that will come along...

Here in the States, the best current rate is 4.95 USD x 24 months = 118.80 USD up front (with "spring" coupon code). If you want to pay in pounds, or via PayPal, you'd better check with sales@lunarpages.com to see if that rate is available to you. There are shorter-term rates: 6.95 x 24 without the "spring" coupon code, 7.95 x 12 (12 months), and 6 and 3 month rates (8.95 and 9.95 plus setup charge, I think). There is no monthly payment plan. The "spring" coupon code is good only for about 3 more weeks (until the official end of spring and start of summer).

thanks guys 

You should go with VPS or dedi if your site is taking too much bandwidth