Reports that the government is to scrap stamp duty temporarily boosted shares in mortgage lenders today.
Chancellor Alistair Darling refused to rule out such a move, which would give impetus to the ailing housing market.
The market responded enthusiastically, with bank stocks turning sharply upwards.
HBOS, which owns the Halifax, was up 8.5% to 325.25p, making it the third biggest gainer in the FTSE 100.
Standard Life was up 7.6% to 240.25p, while Barclays - home to the Woolwich business - rose 7.4% to 364.25p.
Lloyds TSB, which owns Cheltenham & Gloucester, lifted 5.7% to 310.25p, and RBS increased by a similar margin to 227.5p.
Overall, the FTSE 100 continued to rise, up 91.3 points or 1.7% to 5411.5.
