Bovis Homes yesterday joined the ranks of housebuilders forced to sign a new deal with their banks.

The company agreed to higher funding costs in spite of seeing its debt facility decline from £220m today to £160m by 2011.

Bovis did not divulge the terms of the deal, though it did say “pricing has moved upwards to be more reflective of current market trends”.

Market conditions also pushed it towards taking out loans with less stringent banking covenants for its debt, estimated at £100m by analysts.

Financial Times, The Times