Several mainstream lenders cut the prices of their mortgage deals last week.
NatWest/RBS, Alliance & Leicester and Abbey all reduced the prices of their two-year fixed rate deals, although high loan-to-value ratios remained.
This may indicate the start of a slow return to stability, and a knock-on effect could be greater ease in securing bad credit mortgages.

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Ernst & Young, the administrators for failed bank London Scottish, are preparing to sell its debt collection arm.
London Scottish, which specialised in products for customers with bad credit, went into administration at the end of November.
Now its debt collection business Robinson Way, which made a pdofite of £6.3 million in the six months to 30th [...]