The listed builder’s new banking arrangements will allow it a £450m debt facility until 2011.

Redrow’s deal means it has to make a writedown of more than £250m (€310.9m).

The troubled housebuilder recorded a pre-tax loss for the year to 30 June 2008, due mainly to a writedown of £259.4m (€322m) on the group's land holdings and work in progress.

Turnover also fell 22% to £650.1m (€808m) and completed almost 900 fewer units than it did in 2007, down from 4,823 to 3,925.

Alan Bowkett, chairman of Redrow, has called on the government to intervene in the rapidly deteriorating mortgage market.

He said: “It is important that the government review their proposals for the value of land to pay for a wide range of initiatives relating to sustainability, infrastructure and social policies.

“Without this review the short-term adverse consequences for the economy and the longer-term impact on housing supply could be very significant.”