* To book 500 mln stg provision
* Settles with FSA over mortgage complaints
* Lloyds shares down 1.8 percent
(Adds detail, background)
LONDON, Feb 21 (Reuters) - Part-nationalised British bank Lloyds (LLOY.L) will take a 500 million pound ($812.7 million) provision after reaching a deal with the Financial Services Authority to handle complaints over some of its mortgages.
Lloyds, the UK’s biggest retail bank, said it had reached a voluntary agreement with the FSA over initiating a customer review and contact programme with regard to concerns over some of its retail mortgage contracts.
Lloyds added that the agreement with the FSA related to mortgage customers of Lloyds’ Halifax unit, where the wording in the mortgage offer documents received by these customers had the potential to cause confusion.
Lloyds shares were down 1.8 percent at 68.05 pence by 1120 GMT. ($1=.6152 Pound)
Reporting by Sudip Kar-Gupta; editing by Myles Neligan