The Church of England Pensions Board has entered into a £50m loan agreement with Santander Corporate Banking to provide the finance needed over the next three to four years to assist clergy with their retirement accommodation. It is envisaged that further tranches of finance will be arranged in the future to enable the scheme to continue.
The loan will enable the board to continue to provide assistance to clergy through the existing CHARM (Church Housing Assistance for Retired Ministry) scheme where they have been unable to make their own provisions.
Assistance is available on two bases - houses for rent and a shared ownership scheme for clergy with capital to invest in their retirement accommodation.
Around a third of retiring clergy currently make use of the CHARM scheme (around 100 per year).
The loan facility with Santander replaces the facility which has been provided by the Church Commissioners since the inception of the scheme in 1983.
The loan facility was arranged by corporate finance firm TradeRisks, which also advised the Board on its options for financing the scheme.
Shaun Farrell, the Board’s Chief Executive, said today: “I am delighted that we have been able to secure new financing for the scheme which represents an important facility for clergy where they need assistance with their retirement accommodation.
"This is especially important at a time when we are having to review the clergy pension scheme to make it affordable for the future. We look forward to working with Santander Corporate Banking in the future.”
Paul Stevens, Head of Housing Finance at Santander Corporate Banking, said: “This loan arrangement demonstrates our ability to deliver efficient and effective funding solutions and builds on our wider commitment to financing affordable housing across the UK.
"We are delighted to have established this relationship with The Church of England Pensions Board.”
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