THE Devizes-based Silbury Group, which has Sarsen Housing Association as a subsidiary company, has secured interest savings of £250,000 a year.

The terms include a lower interest rate, increased loan facility and simplification and relaxation of existing covenants. The reduction in the interest rate payable is combined with an increased facility of £135million to help fund a development programme of affordable housing in southern England.

The existing consortium of funders comprising Bank of Scotland, Barclays and Abbey beat off other bidders to match Silbury's requirements for the loan.

Richard Kitson, Silbury group chief executive, said: "We were looking to the future when we decided to refinance. Sarsen's strong management combined with a track record in delivering new homes has enabled us to continue to build development opportunities."