BM Solutions News

HBOS/Lloyds TSB announcement

19 September 2008

BM Solutions is part of HBOS which has announced that it has agreed to be acquired by LloydsTSB. Here are some answers to questions you may have

1. What has been announced?
HBOS has agreed to be acquired by Lloyds TSB. The combined group will be one of the largest financial institutions in the banking industry. The deal is still subject to regulatory and shareholder approval.

2. Should I be worried about the safety of my clients' savings?
No. Your clients' money continues to be safe with Halifax. Our parent company, HBOS, has agreed to be acquired by LloydsTSB. We have a strong capital base. Depositors also have protection under the Financial Services Compensation Scheme.

3. Will there be any changes to my clients' mortgage accounts?
There will be no immediate changes to your clients' mortgage accounts as a result of this transaction. Your clients will be able to continue using their mortgage as usual. Should there be changes in future, we'll tell your clients about them in the usual way.

4. What happens next?
The deal is subject to regulatory and shareholder approval. Both HBOS and LloydsTSB shareholders will vote. LloydsTSB shareholders will vote at a General Meeting (GM). HBOS will write to its 2m shareholders seeking their approval. An HBOS shareholder meeting will also take place. The government is supporting the deal, in the best interests of financial stability in the UK.

For further information contact:

Emma Partridge
emmapartridge@hbosplc.com
Press Officer