Year ended 31 July 2006
21. Construction loans
| 2006
£m |
2005
£m |
|
|---|---|---|
| Construction loans receivable (secured) | 313 | 262 |
| Borrowings to finance construction loans (unsecured) | (313) | (262) |
| – | – |
Construction loans receivable, which are secured principally against homes in the course of construction or completed homes awaiting sale, are made to customers of Stock Building Supply Inc and are all denominated in US dollars. These loans have an average maturity of 9 months (2005: 8 months). As at 31 July 2006, the effective rate of interest thereon was 8.85% (2005: 6.98%).
