Taylor Wimpey is due to announce a relaxation of its lending covenants without the need for fresh equity, according to sources close to the talks between the housebuilder and its lenders Building can reveal It is understood the company has struck the refinancing deal due to the recent improvement in housebuilders' share prices and the fact Barratt recently clinched a similar agreement. Barring any last-minute hitches, it is expected to outline the deal at its results for the six months to 30 June 2008 next week. The company has £1.7bn of debt and was expected to breach loan to value covenants in February. Last month it failed to raise £500m via a share placement after one investor backed out on the eve of the deal. A source close to the talks said: "It looks like they have conjured something quite good and resolved their issues. The most likely outcome now is an all-debt solution among the lenders."