Banks backing Telford with £70m refinancing

East London housing firm Telford Homes has survived a searching, year-long probe from its banks to seal a £70 million refinancing deal, the firm said today.

The three-and-a-half year facility with Royal Bank of Scotland, HSBC and Santander runs until September 2014, allowing Telford to repay £30 million in existing loans with RBS and Allied Irish Bank and giving a further £40 million to spend on buying and developing new sites.

Chief executive Andrew Wiseman said: "Securing finance is extremely difficult given the current banking climate and many developers are struggling to access funds.

"It is a significant indication of the strength of Telford Homes that, after a year of extensive investigation of every aspect of the business and its financial position, these three major banks are prepared to support the group to this extent."

The firm, which has sites in Stratford, South Woodford and Greenwich, has seen a "steady" East London housing market since the beginning of the year.

Full-year profits will be in line with City hopes.