Circle 33 saves £250,000 through free-standing derivatives
Circle 33 is set to save £250,000 this year thanks to a deal to fix the interest on its loans.

The London-based housing association, which manages 16,000 homes including this development in Hainault, Essex, has taken out free-standing derivatives on £40m of its loans.

Nathan Dunton, group treasury manager for Circle 33, said: "It gives us the ability to take advantage of new and favourable loan terms offered by banks without being fixed into historic agreements."

Free-standing derivatives pay a floating rate of interest to the association.

It earns money when this rate is higher than the fixed rates it agreed to pay.

Source

Housing Today