In March 2018 we asked Sonya Powe (Unity Trust bank), Jon Lee (Ecology Building Society),
Carolyn Sims (Charity Bank) and Mark Ogden (Triodos bank) for their advice for
community-led housing groups applying for a mortgage.
We asked each of them three questions:
1) What are your top 3 tips for Community-led housing groups who are planning to raise money through a mortgage?
2) What are the two most common mistakes Community-led housing groups make when applying for a mortgage?
3) Why should Community-led housin groups choose you over other lenders?
See their replies below.
(if the video above appears blurry when watching, click Settings and then Quality in the youtube player and select the highest quality your internet connection can handle)
More financial resources for community-led housing
In our groups guide for community-led housing groups, we have a page on finances for community-led housing groups, which includes these recommended resources:
- Watch an introduction to financial planning for community-led housing by Nathan Brown
- The Community Land Trust Appraisal Tool – This tool will help you to develop a financially viable affordable housing project. It takes into account different ownership / tenure options.
- The Radical Routes financial planning spreadsheet is designed for housing co-ops, to work out what they can afford to buy, how much rent they need to set and what loans and loanstock they will need. It is mainly designed for single tenure projects (rental model)
- The National Community Land Trust network publish up-to-date information about sources of finances. It includes information about ethical lenders which community-led housing groups can get mortgages from, including Ecology Building Society, Triodos bank, Charity Bank, Unity Trust bank and Co-operative and Community Finance
- Ecology Building Society offers up to 80% of the mortgage costs for community-led housing, while Triodos offers up to 70%. The National Community Land Trust network has more information on charitable and ethical lenders that have funded community-led housing. See a helpful guide to different lenders’ requirements and contacts by the National Community Land Trust network.
- Financial literacy for co-operatives: Very handy guide for housing co-ops by Seeds for Change, going over annual accounts, budgets, cash flow, loans, bookkeeping and other financial aspects of housing co-ops (web version, pdf version)
- Simply Finance: A comprehensive guide to the different options for financing a community enterprise
- Community-led housing friendly accountants: catalystcollective.org / 0845 223 5254 / email@example.com