A: By helping set up a housing co-operative, you are using money to change the housing market. You are helping create long term, affordable and secure housing which can’t be sold off for private gain. Unlike banks and other forms of investment, we are 100% transparent with your money and you will be kept up to date with how your money is being used. Time and time again peoples’ savings are invested in the arms trade, fossil fuels and other socially and environmentally harmful industries without their knowledge. With us you are making a social investment; you know your money is being used for good.
A: All Loanstock has to be used to buy and improve the property. Our first priority is to secure a property. Money which exceeds this cost will be used to make any necessary renovations when we move in.
A: Investments will generally be returned with interest at the end of the term you initially choose. We will however consider all requests for early withdrawal of an investment and may return the invested money with interest accumulated thus far if it is financially viable for the co-operative. There is no guarantee, however, that we will be able to fulfill these requests so when you fill out the application form you should consider carefully when you think you’ll need your investment to be repaid.
A: Yes (if you want). On the Loanstock application form you can choose how much interest you would like to receive (0-2%). When we receive your application we may get in touch to ask whether you are able to shorten or extend the term based on the interest you ask for.
A: In short, no it doesn’t mean that. ‘Unsecured’ means that the co-operative does not offer investors any collateral against the loan. However, in the unlikely event that things go wrong and the co-operative fails or defaults, it is most likely that the house will be sold in order to repay investors. This is an extremely rare occurrence among co-operatives, as a housing model they have an excellent track record.
A: Yes. If you’re not interested in investing for whatever reason, you can also make a donation. Please get in touch via email if this interests you. Also, you should remember that the information in our loanstock pack does not constitute financial advice, and if you’re unsure you may want to consider asking an independent financial advisor.
A: Great! Thanks! First thing to do is fill in our Loanstock form which is accompanying this pack, then send it to the address at the bottom of the pack. Then we will get in touch to discuss and finalise the agreement and we will organise payment when we are ready to put down a deposit on a property.