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How we operate

The Housing Finance Corporation [THFC] is the UK’s leading affordable housing aggregator. A not-for-profit institution, THFC is primarily funded by the issuance of bonds in the sterling capital markets.

THFC on-lends predominately long-term debt to over a 160 individual housing associations [HAs] throughout the UK who in turn contribute to developing and managing the affordable rented sector.

 As a mutual finance company, THFC offers cost-effective and flexible credit distribution at the same low rates that funds are borrowed.

THFC has continued to build a unique relationship with the housing association market, since its establishment in 1987.

The group is also partially funded by the European Investment Bank.

Despite the variety of loan structures THFC and all its subsidiaries adhere to the same fundamental principles:

  • Funds are raised solely for on-lending to housing association groups.
  • Funds are on-lent on a substantially identical maturity, interest and repayment profile thus ensuring that no material mismatch risk is taken on interest rate movements
  • No currency risk in relation to its funds is taken by the Group or passed on to its borrowers.
  • Loans are fully secured and covenanted in accordance with the terms of the relevant individual issuing company’s governing Trust Deed.
  • The Group makes and maintains its own independent credit assessment of its borrowers,

using its own credit rating system, and approves applications for funding only after a careful review by the Group’s credit committee.

  • THFC’s subsidiary, Affordable Housing Finance [AHF] has delivered the most innovative and successful UK based government sponsored scheme of its type.
  • THFC monitors the financial position of its housing association borrowers on an on-going basis, including measurement against covenant undertakings. All housing association borrowers are subject to external regulation by the social housing regulator in the relevant jurisdiction.