One of the West Midlands’ largest registered social landlords has signed the first in a series of loans to finance development.

Bromford Carinthia Housing Association signed the £20m deal with Newcastle Building Society and will borrow £50m from other banks.

It received a £49.6m grant to build 1239 homes when it won Housing Corporation development partner status in March (HT 26 March, page 8).

And it already had a £15m loan with Newcastle Building Society, on top of the new borrowing agreed with it.

Bromford’s loans manager Terry Scarle said this week’s deal improved the terms on the new and old parts of the loan, with improved asset cover and greater loan-to-security values.

He added: “The quicker we draw down the money, the lower the margins.

“If we take it all by December, we get the lowest margin. If we take one-third or one-half it’s increased pro rata.”

Bromford has almost 12,500 homes, including more than 2000 shared-ownership properties.

Source

Housing Today

Postscript

Newcastle Building Society has also signed a £10m deal with Nomad Housing Group. The Newcastle-based landlord raised its borrowing with the lender from £2m to £12m.