A source close to the negotiations told the Times: "They [Virgin] are taking it very seriously and they are credible".

He went on to say that as a result some would-be buyers are renting instead. However, Rics remains optimistic that due to a strong economy and employment conditions, and demand for houses will stabilise again.

Following the Resolution Foundation's announcement that price comparison websites should have a voluntary code of practice, Nationwide says said such a code should also apply to banks and building societies.

Sub-prime mortgages charge higher interest rates due to the high-risk factor of lending to people with bad credit ratings.

Trevor Williams, chief economist at Lloyds TSB Corporate Markets, believes that the MPC will hold rates again this month.

However, mainstream lending options may not be open to all and some people with poor credit histories will only be able to access adverse credit products.

Sue Hayes, Abbey director of mortgages, said: "Fixed rates have always been popular in times of uncertainty when people look to gather as much security as they can from their mortgage."

Most economic analysts, having read the latest monetary policy committee minutes, are of the view that interest rates have peaked, according to the Financial Times.Recent economic conditions have meant that the debt landscape is changing, according to one debt charity.

Shortly after this, Northern Rock was forced to approach the Bank of England for a crisis loan, in a move that panicked consumers and the banking industry alike.

With social lending, people arrange to borrow from or lend money to each other at an agreed rate, usually via a website.