Lloyds puts aside more than £400m for mortgage arrears as rates soar

Bank says profits have fallen as interest rates and cost of living are challenging' for people and firms

Lloyds Banking Group has put aside more than 400m to prepare for a potential increase in customers falling behind on more costly mortgage payments.

It comes amid surging interest rates, which have risen sharply since late 2021 and made payments more expensive for new owners and those rolling off existing fixed mortgages.