Loanstock

You will receive interest on your ethical investment based on the interest rate you have selected.

People lending loanstock might be members of the co-op, or friends and family, or simply people who believe in the project. Rental housing is one of the most secure places to invest money.

We have planning permission, and are deep into discussion with builders to construct at a good price. We have also been promised £370,000 in grant from Bristol City Council toward the social housing aspect of the project, and are in discussion with several banks about a mortgage for the remaining amount. The more money raised at this stage means the co-op has to borrow less making the scheme more affordable as well as returning interest to community investors rather than banks.

Your investment will help to create secure, affordable and sustainably developed housing for generations to come.

We need to raise £600,000 in loanstock, alongside grants and the mortgage to contribute to a total build cost of £2 million across all 5 houses.

You can lend us money ahead of the construction, or after the construction is complete. Lending to us now helps us to keep the financing costs down during the build. Lending after construction is complete is a lower risk investment.

The loanstock raised before construction will be used to finance the build, once the construction’s complete loanstock will be used to reduce the cost of borrowing from the bank. Without loanstock this project is not viable.

You can invest any amount above £1000.

We offer an interest rate of 0-3%. The interest offered is compound which means that the chosen interest rate is applied each year to the total amount after interest has been earned. Interest will only start accruing at the point that the first co-op residents move in.

If you go for the 0% option you will receive back your original sum with no interest. Some people take this option as a way of providing extra support to a co-op. The co-op will have extra money and more financial freedom to develop because of this.

You can select a loan period of 5, 10, 15, 20, or 25 years after which time your loan will be repaid in full plus interest at the selected rate. Longer terms benefit the co-op financially.

The co-op does not deduct tax from the interest – it is the investor’s responsibility to declare the interest in a tax return. If anyone receives more than £250 interest in a year, the co-op is legally obliged to make a special declaration to the local tax office.

If you would like to be notified when the loanstock offer is open, please complete the below pledge form or email us.

Loanstock is an unsecured loan which just means that the co-op does not offer any collateral against the loan.