The refinancing provides the group with around £850m of committed facilities to June 2016 and £650m to May 2018, with some facilities extending as far as 2021.
It will see average underlying interest cut from 7% to 4.5% as the house builder’s financial position is strengthened by the upturn the housing market and profits.
The firm has cancelled interest rate swaps and will now repay high cost private placement notes needed to fund the group through the dire days of the housing market crunch.
Britain’s biggest house builder said it was on course to achieve zero debt by June 2015
David Thomas, Group Finance Director of Barratt Developments said: “We are delighted to have agreed this comprehensive refinancing package ahead of schedule which will provide us with more appropriate lending facilities, in terms of both interest cost and duration.
“It reflects our improved financial position and the significant progress we’ve made towards our target of zero net debt as at 30 June 2015.
“The monetisation of the shared equity portfolio is in line with our strategy and represents another self-help measure to improve profitability, reduce net debt and increase return on capital employed.
“The fact that we’ve been able to conclude this deal now is further evidence of the improving outlook for the sector.”