Mortgages

Halifax has dropped a controversial clause on its tracker mortgages which prevented it from passing on interest rates once the bank rate fell below 3%.

The Bank of England has made a further dramatic cut in interest rates, down to 2%, the lowest level for more than half a century

The latest Halifax House Price Index has revealed a 2.6% decline in November, with the average price now £163,605 - the same level as July 2005.

The Government has unveiled plans to allow borrowers in financial difficulties to defer part of their mortgage interest payments for up to two years.

Interest-only mortgage deals in the mainstream residential market are in decline, research suggests.

The Association of Mortgage Intermediaries (AMI) says even a 1% cut in interest rates this week will not be enough to get the market back on its feet.

Bank of Scotland (BoS) is finalising negotiations with the European Investment Bank (EIB) to secure £250m in funding to support its SME customers during difficult trading conditions.

Legal firm Salans has urged caution following Royal Bank of Scotland's (RBS's) and Northern Rock's commitment to not start repossession proceedings until six months after a customer has fallen into arrears.

Lending decisions made by individual banks are "infinitely more important" than the fiscal stimulus unveiled by the Government, according to Liberal Democrat Shadow Chancellor, Vince Cable.

The FSA has told lenders to ensure they exercise the principles of TCF for customers on tracker mortgages.