Housebuilding crisis: Barratt's £400m bank loan expected in two weeks

Barratt Developments is still expecting to sign a £400m loan agreement with its banks before the end of the financial year in two weeks.

The loan will help Barratt deal with £800m of debt taken on last year to finance the £2.2bn acquisition of Wilson Bowden.

Barratt finance director Mark Pain said £200m of the acquisition had already been paid back, leaving £600m due within a year.

The agreement with bankers will roll over then £400m for two years, reported the Financial Times.

It is expected to add about £4m in costs to Barratt's bottom line.

A company representative told the newspaper it was just waiting on the paperwork for the loan to progress.