The daughter of a 92-year-old priest who is paying interest on a loan agreed with the Church of England Pensions Board at 8.6 per cent – more than twice the cur-rent average – has questioned the morality of the scheme.
In 1985, the Revd Eric Quin took out a shared-equity loan in order to purchase a three-bedroom cottage in Cheshire for Â£45,750. With his wife, he paid Â£20,750 to put down a 45-per-cent deposit. The Pensions Board paid the remainder, Â£26,500, on the understanding that it would be entitled to 55 per cent of the final sale price.
The initial interest rate was three per cent – much lower than the 12-per-cent mortgage rate at the time. This rate was gradually increased in line with the pensions of all the fund’s members. Mr Quin is now paying interest at a rate of 8.6 per cent. The property has risen in value to Â£200,000.