How we operate

The Housing Finance Corporation (THFC) is the UK’s leading affordable housing aggregator. Set up in 1987, THFC issues long-term bonds in the Sterling capital markets and on-lends the proceeds to housing associations.

Throughout its history THFC has demonstrated its commitment to the social purpose of housing associations by innovating new products to achieve the best possible terms of funding, allowing its 160+ HA borrowers to grow and meet the demand for affordable housing. As a not-for-profit, the Group’s surpluses are retained and reinvested to ensure THFC can continue to provide competitively priced funding for HAs long into the future.

By serving the affordable housing sector in this way THFC has become a trusted name and achieved steady growth. Its Group loan book now totals over £7bn and it has a dedicated and experienced team, allowing it to offer a comprehensive in-house service.

The THFC model allows investors to diversify risk through THFC as an aggregating financial intermediary, and housing associations to get long-term, low-cost funding on standardised terms.

Since inception, and across all its subsidiaries, THFC adheres to six core principles:

THFC Borrowers across the UK

Funds are raised solely for on-lending to Registered Providers of affordable housing

Funds are on-lent on a substantially identical maturity, interest and repayment profile, ensuring best possible terms for HAs and no material mismatch risk

No currency risk is taken by the Group or passed on to its borrowers

Loans are fully secured with covenanted minimum levels of security

THFC makes its own independent credit assessment of borrowers through thorough due diligence and by using its proprietary credit grading model

The financial position of borrowers is closely monitored on an ongoing basis, including measurement against covenanted loan security and loan interest cover undertakings

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Our Staff

THFC comprises a diverse team of recognised industry experts.

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For Borrowers

THFC loans to borrowers from across the country, big and small. See how we can help you access low-cost funding.

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For Investors

Why invest in housing associations?

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