What you need to know to get investment from this fund
The Affordable Homes Rental Fund will lend up to 100% to Community Land Trusts or other community-led organizations that would like to build affordable homes. Conversions of existing buildings and refurbishment to create affordable homes can also be funded, as can the refinancing of affordable housing for rental after construction.
The Fund is open to community-led groups seeking finance for affordable rental housing. It can enable some community schemes to be delivered without the need for grant funding and can also provide development finance where project plans include an affordable rental component along with other shared ownership/open market homes for sale.
As the repayment profile tracks rental inflation, borrowing from the Fund typically enables the applicant to borrow more than would be offered by conventional mortgage providers, and to secure a fixed rate of interest. Within 8 years the organization should then be able to refinance and obtain a conventional 25 year capital repayment mortgage.
Investment Proposition Key Facts:
Impact Focus: Affordable local homes
What We Fund: Affordable housing schemes (pre or post construction)
Cost: 5.5%-7.5% Fixed rate
Term: 8 years
Security: 1st charge