Mortgages for Churches & Charities
If you would like to get in touch to discuss how Kingdom Bank might be able to help your organisation, please do contact us.
Alternatively, here are some frequently asked questions which may provide the answers you need.
We have a different approach from most lenders when it comes to lending to churches and charities.
Most lenders will require a deposit of 30% or 40% of the building’s value, whereas we use a sliding scale and require just 20% deposit on smaller properties, rising to 40% on more extensive buildings.
If your organisation owns other properties, these may be used as additional security so you may be able to borrow more of your project amount.
We would love to talk to you so that we can hear more about your aims and vision, and see what we can do to help.
You will need to be a registered charity and be able to provide us with your charity number.
We generally require the following:
- Your returns with the Charity Commission need to be up-to-date.
- You can confirm you have been operating for three years.
- You are able to provide full financial accounts for the last three years.
- Your income is stable or increasing.
If you are unable to meet these criteria but would still like to discuss an application, you can call us on 0115 921 7280.
- The total arrangement fee is 1%, payable on application and non-refundable.
- For applications below £300,000 a fee of £300 is payable on application (non-refundable).
- For applications above £300,000 a fee of £500 is payable on application (non-refundable).
- The remainder of the arrangement fee is payable on acceptance of a mortgage offer.
Please contact us for details of fees related to the Bank’s legal work.
The Bank will require its own solicitor to act for the Bank in the setting up of the mortgage and the cost of this work is payable by the borrower.
Valuation Survey fees
Please contact us for an indication of the cost of an independent mortgage valuation survey. The Bank will require a mortgage valuation of the property from an independent surveyor on the Bank’s panel of surveyors. The cost of the valuation is payable by the borrower.
There is no penalty for lump sum repayments or regular overpayments from your own resources. An early repayment charge equal to 3 months’ interest is payable if the mortgage is transferred to another lender in the first 2 or 5 years (depending on the type of product you have with us).
Currently we don’t offer fixed interest rates on any church and charity lending.
No. We recognise that you are giving your time and skills voluntarily and, under normal circumstances, do not ask you to make any greater commitment than ensuring you act responsibly and use the organisation’s money and assets to repay the mortgage.
You will normally need to provide a deposit and we will guide you on the amounts required.
A term of up to 30 years is available but we realise that sometimes a shorter term is more appropriate.
We make every effort to provide an excellent service to our customers. Occasionally, however, things go wrong and we will make every effort to put them right. Please visit the complaints area of our website for information on how to pursue a complaint.
We calculate interest on a daily basis for all new repayment mortgages.
The Bank will appoint its own solicitor to oversee the transaction and you will be responsible for meeting the Bank’s solicitor’s fees. Using the same solicitor to also act on your behalf can often save on costs but you are free to choose your own solicitor if you prefer.
To ensure the property is suitable as security, we will arrange a valuation by an approved valuer. We will obtain quotations from our panel of valuers to give you an indication of the costs involved before any arrangements are made.
If the organisation is led by one or more key people we may ask that assurance is taken over the life of the leader(s) sufficient to repay the mortgage. This means that, in the event of a fatal accident or unexpected death of the leader, the organisation is able to clear the mortgage and take time to appoint a new leader without the fear of being unable to meet the mortgage repayments.
If you would like to discuss how Kingdom Bank might be able to help you, please do get in touch.
YOUR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.