A 78-year-old war widow has won a legal battle to keep her Keighley home, which she faced losing to a loan company.

A county Court judge has ruled that he is to throw out a legal order in which Doris Armstrong's house, in Braithwaite Walk, could be taken from her by the Manchester-based company, Reunion Finance.

Judge Robert Taylor told lawyers at Halifax County Court yesterday he had decided to 'set aside' the order. He said he would give his reasons for the decision at a special hearing in Leeds on May 13.

"On that date I will also deal with the question of costs and permission to appeal," he said.

Mrs Armstrong's legal team are also expected to make a counter claim disputing the original loan agreement.

Mrs Armstrong has amassed a £39,000 debt on a loan of £2,784 taken out in 1991 - being charged 45 per cent interest a year.

She faced losing her former council house home, valued at £28,000.

Her solicitor, Simon Abbott, said: "We will be making a counter claim for costs and arguing that the credit agreement was improperly executed and was unenforceable. We will have a trial in due course.

"The past few months have been very stressful for Mrs Armstrong and her family and she is delighted she will remain in her home for the time being."

Mrs Armstrong, whose husband died aged 40 in 1960, said after the hearing: "We have won today so the future looks good."

Her case has been backed by Keighley MP Ann Cryer, who believes thousands of others could be in the same predicament.

Her spokesman said: "We couldn't have asked for anything better today.

"The loan company can no longer seek a warrant to take possession of Mrs Armstrong's house."

They will now await a new hearing at which it was hoped to look at the whole question of the legality of the loan agreement she took out, he added.

Her barrister, Bradley Jay, told the court that her agreement was in breach of the Consumer Protection Act because the administrative charges had been included in the loan debt.