Loan Stock

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

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 £600,000 loan stock will be used toward the costs of building our new homes. We have planning permission, and are deep into discussion with builders to construct at a good price. We have also been promised £340,000 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.

You can invest any amount between £500 – £100,000

We offer an interest rate of 0-4%. 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 inits first property.

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. Loan stock given before the construction of the housing will be held for 12 months.

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 invest in our loanstock offer or would like to know more you can apply using the button at the top of this page. You can also request an Investor Pack which includes our full business and financial model. Contact us at furzecoop@gmail.com.

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