The bank has announced the expansion of its ringfenced social rent loan fund
NatWest issues major announcement for customers who are social renters
NatWest is doubling the social rent loan fund to £1 billion in response to strong demand. The bank has announced the expansion of its ringfenced social rent loan fund from £500m to £1 billion to accelerate the delivery of homes for social rent across the country.
NatWest, which has branches in Birmingham, will hike its pioneering social rent loan fund from £500 million to £1 billion to boost building of social rent homes across the UK.
The first to market loan has no arrangement fee and discounted interest margins to support housing associations which are already NatWest customers.
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This £1bn loan offering is part of the bank’s ambition to lend £7.5 billion to the social housing sector to year-end 2026.
The discount in fees and margin on the £1bn when fully deployed could save the housing association sector up to £50 million of finance costs
Eligible housing associations which are existing customers of the bank can apply for the social rent loans which are incentivised with discounted interest margins plus no arrangement fee.
Paul Thwaite, CEO, NatWest Group, said: “Investing in safe, warm, and affordable housing for families isn’t just about shelter but an important investment in the long-term well-being, education, and economic prospects of children and their parents.
“With more than 1.3 million households still on social housing waiting lists in England alone, NatWest is committed to the role we can play in supporting the UK social housing sector in any way possible.”
“This is why we have pledged to increase our social loan offering to £1bn for our customers to help them build vitally needed social rental properties across the UK as part of our £7.5 billion lending ambition to the social housing sector.”
David Ball, Chief Financial Officer at VIVID, commented: “NatWest’s new social rent linked loan product gives housing associations the financial flexibility to build more homes at social rent levels.
“The overall rate discount being offered is an innovative step change that shows NatWest’s commitment to supporting the Government’s Social Rent led agenda.”
Paul Walsh, Chief Finance Officer at Bromford Flagship, added: “NatWest has been a key strategic funding partner of ours for several years and this deal underlines the strength of their long-term support for us and our sector.
“The social aspects of this loan clearly demonstrate the alignment of our organisations’ values and strategic objectives.
“This type of innovative funding structure helps us to deliver much-needed new homes for social rent, the most affordable tenure, whilst continuing to invest heavily in our existing homes and deliver high quality services to customers.”