What rate of interest will be charged on loans from the £50 million lending facility from the European Investment Bank.

The rate of interest to be charged will only be known when the loan agreement between the European Investment Bank (EIB) and The Housing Finance Corporation is finalised. Because the EIB is AAA-rated, it is able to source funds from the international capital markets at competitive rates otherwise only available to sovereign states. One of the conditions of EIB funding is that the same rate is charged by The Housing Finance Corporation when it subsequently lends the money on to individual housing associations.