The Royal Bank of Scotland (RBS) has doubled the time guaranteed not to repossess the properties of customers who fall behind on payments from three months to at least six months.

The bank, which owns NatWest, is Britain's fifth largest mortgage lender with a 7% market share.

The government has bought a 58% stake in RBS as part of its recapitalisation plan for the banking sector.

Barclays are set to raise up to £7.3bn in a proposed deal that will strengthen its balance sheet and maintain the banks independence.

The money will be mainly raised from the state investment funds and royal families of Qatar and Abu Dhabi.

If the deal is completed as expected, the Middle Eastern investors will have an almost 32% stake in Barclays.

Barclays shares initially rose on the news, but later reversed course as investors worried about the cost of the funding. Rumours in the city say the interest rates charged may be up to 14%.

The UK government is to inject up to £37bn of taxpayer cash into Royal Bank of Scotland (RBS) Lloyds TSB and HBOS.

The Royal Bank of Scotland
RBS is to raise £20bn, with chief executive Sir Fred Goodwin quitting the firm after his bank was forced to go to the Treasury for the bail-out.
The takeover of ABN Amro in October 2007 is said to have pushed the bank over the edge.