Community Housing Mortgage

Helping you give a home to others.

Christian social action projects are bringing restoration and hope to people across the country. We lend to individuals seeking to purchase accommodation to house vulnerable individuals, such as refugees, asylum seekers, adults with disabilities and those who have left prison or abusive situations. We also provide mortgages for social actions projects which are not overtly Christian.

We would usually require one of the following scenarios to be in place:

  • The property will be let to a charity who will provide accommodation and support for vulnerable individuals.
  • The mortgage borrower themselves will have considerable experience in directly providing this sort of accommodation.

The value of the mortgage available will depend on the amount of income the property will receive.

If you would like to discuss a Community Housing Mortgage, please do get in touch with our mortgage team.

Case study

Janet volunteers for a Christian charity which supports asylum seekers. The charity was in need of housing for their clients, so Janet decided to purchase a property to rent back to the charity, enabling them to support those they serve.

Using a Kingdom Bank Community Housing Mortgage, Janet was able to facilitate accommodation for six asylum seekers connected with the charity. This enabled them to transform their lives, giving them physical provision and the opportunity to hear about Jesus.

*Story based on the experiences of real customers. Names and places have been anonymised.

Interest rates

Interest rate 3.25%

  • Available to all borrowers where loan-to-value is less than 75% and affordability is above 150%.
  • Rate fixed for 2 years.
  • Additional arrangement fee of £600.
  • The overall cost for comparison is 5.40% APRC*

*The above APRC is based on a mortgage borrowing amount of £100,000 over 25 years at 3.25% for the first 2 years, increasing to the Bank’s Standard Variable Rate (5.00%) for the remainder of the mortgage.

Interest rate 4.50%

  • Available to all borrowers where loan-to-value is less than 75% and affordability is above 150%.
  • Rate fixed for 5 years.
  • Additional arrangement fee of £600.
  • The overall cost for comparison is 5.40% APRC*

*The above APRC is based on a mortgage borrowing amount of £100,000 over 25 years at 4.50% for the first 5 years, increasing to the Bank’s variable rate (5.00%) for the remainder of the mortgage.

Current interest rate 5.00%
  • Available to all borrowers where loan-to-value is less than 80% and affordability is above 150% for owner-occupiers and 110% for Buy-to-Let.
  • This rate is managed by Kingdom Bank and is reviewed monthly.
  • Borrowers are given 14 days’ notice of any changes in the interest rate payable.
  • The overall cost for comparison is 5.30% APRC*
*The above APRC is based on a mortgage borrowing amount of £100,000 over 25 years at 5.00%

Current interest rate 3.95%

  • Available to all borrowers where loan-to-value is less than 75% and affordability is above 150%.
  • This rate is managed by Kingdom Bank and is reviewed monthly.
  • Borrowers are given 14 days’ notice of any changes in the interest rate payable.
  • This discounted rate is available for the first three years of the mortgage, after which point it will revert to the Standard Variable rate.
  • The overall cost for comparison is 5.00% APRC* across all personal mortgages.

*The above APRC is based on a mortgage borrowing amount of £100,000 over 25 years at 3.95% discounted for the first 3 years, increasing to the Bank’s variable rate (5.00%) for the remainder of the mortgage.

Details

The interest rate is a bank managed rate of 0.25% Gross/AER.

Interest accrues on the daily balance at the rate notified to you from time to time.

Interest is added to or deducted from the account on the 31st December each year.

Yes.

As this account pays a variable rate of interest it can change over time and the general  terms and conditions explain how this happens. We will always let you know of any planned changes to the rate. For example, we may review our interest rates if the Bank of England base rate changes.

If you deposit £1,000.00 when you open the account, the balance after 12 months will be £1,002.50.

This assumes:

  • You do not withdraw any money and interest is paid into this account.
  • The interest rate stays the same.
  • You do not add any more money.

A minimum deposit of £1 is required when opening an account.

You can either apply for an account through our website, by clicking here or alternatively you can download an application form to complete and post to us. This form can be found here. If you would like us to send you an application form in the post, please get in touch.

Once a fully completed application form is received in the post and the necessary checks have been carried out by our team  we will be delighted to open your account with us.

If you change your mind, you can advise us in writing, and we will cancel the account free of charge within 14 days of opening.

Deposits can be added at any time, by internet banking, standing order, card payment or post.

You can register for online banking which will allow you to manage your account online. Alternatively this account offers a telephone banking functionality.

All withdrawals are made to a nominated account, either via online banking or by calling us. You are also able to request withdrawals in writing.

Yes.

You can make withdrawals from this account by giving 32 days’ notice and there is no charge for doing so.

All withdrawals must be made to an account in the same name.

No charges or penalties (except those referred to in out terms and conditions where we permit early withdrawal at our discretion and any charges on transfer before maturity or notice period served) apply to these accounts.

To see whether Kingdom Bank could provide you with a mortgage, please complete the form below. One of our friendly Christian mortgage team will be in touch to discuss your plans.

Sorry, we’re only able to offer mortgages for properties in the UK.
This is a requirement for a Kingdom Bank mortgage.

You can also call us on 0115 921 7280 to discuss your enquiry.

Your property may be repossessed if you do not keep up repayments on your mortgage.