Mortgages Uncovered

The newly formed Lloyds banking group has pledged to offer more business loans and mortgages on the condition that the £480 million in their annual interest charges is waivered by the government which the bank says it is due from the recent government bailout funding.

Chancellor, Alistair Darling has prepared for the possibility of missing out on the annual interest which is generated from the 4 billion pounds of conversion from government preference shares on the understanding that the bosses of the new group.

Lloyds is now due to provide its full annual results this week that are set to include the £10 billion of losses at HBOS.

It the meantime, it emerged that some of the senior City bankers have been demanding pay rises of over 0% in order to compensate for their bonus culture being reigned in.

Wages in the financial sector were amongst those figures that had doubled within the last few years as banks have tried to balance their own books preparing for the massive loss of big bonuses.

Some market analysts have said the basic rates had already increasing hugely by between 5 and 10%, once bonuses had been reduced significantly these were to rise to cover the deficit.