Distributed to

All registered social landlords (excluding co-ownership societies)

Summary

This circular replaces circular F7 - 27/99

1 Housing Corporation interest rates

With effect from 1 January 2000, the Housing Corporation's rates of interest are as follows:

1.1 Post 1.4.89 approvals per £1 lent

Development period: 5 yrs, Interest rate %: 7.25, Annuity factor: -, Interest rate %: 7.375, Annuity factor: 7.709

1.2 Pre 1.4.89 approvals, per £1 lent

40 yrs (Equity Sharing Schemes), Interest rate %: 5.250, MIRAS rate %: 4.725, Annuity factor: 6.000, MIRAS annuity factor : 5.588

1.3 Other interest rates

Charges on late payment of invoices:

Monthly rate (used to calculate charge), Interest rate %: 0.7592

APR, Interest rate %: 9.50

Barclays base rate, Interest rate %: 5.50

Barclays 7 days notice deposit account, Interest rate %: 0.500

2 Retail Price Index

The movement in RPI is used in rent reviews on some shared ownership schemes and in increasing the minimum and maximum loan which may be made to Right to Buy (RTB) leaseholders in respect of repairs undertaken under the service charge (para 2.3 of F5-31/92).

Base date for all-items index is 13 January 1987 when the index equalled 100.

The index is published within "Labour Market Trends" and the latest movements can be found by telephoning:
answerphone: 020 7533 5866
enquiries: 020 7533 5874

3 Enquiries

3.1 In respect to paragraph 1 to The Housing Corporation, 149 Tottenham Court Road, London W1P 0BN Telephone:020 7393 2214.

3.2 Enquiries in respect to paragraph 2 Performance Review Section (Financial Supervision) Regional Offices.