LONDON (Bloomberg) — HBOS, the UK's biggest mortgage lender, will cut as many as 650 jobs as it merges two operations serving "small and medium-sized" corporate customers over the next 18 months. HBOS will redeploy an additional 350 jobs as the Edinburgh-based lender creates a single division serving corporate customers with revenue of up to $50 million, spokesman Shane O'Riordain said in a telephone interview. About 70,000 people are employed by HBOS.