Mortgages

House prices will increase by 15% over the next five years due to a shortage of available properties, according to economists.

Lloyds Banking Group confirmed this morning Co-Operative Bank and NBNK Investments are the last two bidders in the running for its 632 branches and retail assets.

Taxpayers will underwrite mortgages totalling hundreds of millions of pounds under government plans to "unblock" the housing market and revive the flagging economy.

The Financial Services Compensation Scheme (FSCS) has reassured savers with Northern Rock plc and new owner Virgin Money that account holders will have separate cover at each of the two banks.

The Virgin Money buy-out brings with it both good and bad news, but it is the latter - the £653m loss to taxpayers - that will make all the headlines.

The Treasury has sold Northern Rock plc to a consortium led by Richard Branson's Virgin Money for £747m, at a £650m loss on the £1.4bn of capital it injected into the bank.

Hundreds of thousands of Halifax customers could receive payments of up to £4,500 after the bank said more people might have been misinformed about changes to mortgage rates than it had originally thought.

Advisers have been warned to be "very careful" when recommending stamp duty land tax avoidance (SDLT) schemes as some unscrupulous vendors downplay the risks of an HMRC investigation into the activity.

Aviva and Legal & General are to provide life and general insurance products for Barclays Bank UK Retail customers.

The deputy governor of the Bank of England has revealed how the Monetary Policy Committee (MPC) nearly raised rates earlier this year, before the downturn hit markets.