Talks over debt refinancing are progressing, says senior source, but deal won't be announced in next week's trading update

Taylor Wimpey is not expected to make any firm announcement on its debt refinancing at a trading update next week.

According to a senior source close to the talks between the housebuilder and its lenders, barring any last-minute deal in the next few days there will be an update but no “knock-out blow” from Taylor Wimpey next Tuesday morning.

The housebuilder is struggling with debts of £1.7bn and is in talks about changing banking covenants to become linked to cash generation.

The banks are already on board but in October the housebuilder said talks had been extended to include bondholders and an outcome was not expected until early next year.

Despite the delay, there has been speculation in recent weeks that the housebuilder may tie up a deal this side of Christmas following the appointment of new finance director Chris Rickard and the government’s recapitalisation of the banks.