The London-based association will save the money on its loans, worth £135m, through low interest rates and a facility that allows it to repay parts of the loan early.
The £30m "revolving facility" allows St Pancras & Humanist to borrow money, pay it back in a year then borrow it again.
The facility could save the association £100,000 of interest payments over one year.
In addition, interest rates have fallen from 6% to 3.75% since the association took out the original loans in 1996.
St Pancras increased its loans by £75m with three lenders. Its Abbey facility is up from £12m to £50m, its Bradford & Bingley loan has gone up from £20m to £50m and its borrowing with Nationwide has risen from £28m to £35m. The new money includes £17.5m of fixed-rate loans.
We wanted the revolving facility so we can borrow for short periods and save on interest
Tracy Allison, finance and IT director, St Pancras & Humanist
The Nationwide loan includes an option that allows the association to borrow up to £5m and put up the security a year later. Usually, the borrower has to find the security before the funds are released.
Tracy Allison, finance and IT director at St Pancras & Humanist, said the £5m option allowed the association to take advantage of development opportunities that come up at short notice.
She added: "We have refinanced to take advantage of the better rate but we wanted the revolving facility so we can borrow money for short periods, repay it and save money in interest."
The association plans to redevelop its accommodation blocks for student doctors and nurses at North Middlesex University Hospital, and plans to spend £60m building 1200 units in London and north Hertfordshire over five years. It will also spend £15m bringing 1500 homes up to the decent homes standard.
Source
Housing Today
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