Who owns and manages the properties?
Homes with Purpose, a charity registered in England and Wales (1193610). Homes with Purpose will arrange for buildings insurance on all freehold properties, and is also responsible for the management and maintenance for the properties, unless otherwise delegated through a lease.
What expertise does Homes with Purpose have in managing accommodation?
We were founded in 2020 to buy two houses using funds from 30 lenders and donors – one as a manse to be leased to Barton Community Church, the other as a house to be let to Edge Housing for tenants who would otherwise be homeless. Our Trustees hold the expertise and experience we need, including in housing, finance and fundraising.
Who's on your team?
Robin Peake - Founder and Chair
John Coyle - Secretary
Jonathan Rowlands - Treasurer
Dan Farley
Stuart Waddington - Property Trustee
We're currently looking for a Trustee with a legal background
Is there a minimum loan?
Yes - £5,000 for 5 years. However, if you want to donate, there is no minimum!
How do I earn interest?
Tenants pay rent to provide a financial return to lenders paid every 6 months.
What interest rate is available on my loan?
You can choose your interest rate of 1%, 2% or 3% - it's entirely up to you. The lower the interest rates, the lower we can keep our rents.
Higher interest rates are considered for loans of £50,000 or more.
How often do you pay interest to lenders?
Every 6 months
What happens if the property prices fall?
The payment of interest on a Homes with Purpose loan is unaffected by the rise or fall in property values.
Can anyone lend?
Whilst we are a Christian charity currently focussed on Oxford, we welcome all types of lenders. Before we can accept your loan, we may need to carry out identity checks in line with anti-money laundering best practice.
What do most people loan?
We have people lending between £5,000 to £150,000. The average loan received is £12,151
What are the income tax liabilities of a Homes with Purpose loan?
The interest received from a fixed rate loan will be classed as income to you; therefore, you are liable to pay income tax at the prevailing rate. This is deducted by Homes with Purpose before forwarding the net interest to you. You should state receipt of such income on your self-assessed tax return for the financial year of receipt of the interest. If you have made your loan interest-free to Homes with Purpose, or do not qualify to pay income tax (e.g., you are a charitable organisation) there should be no income tax liability. However, you should take tax advice as to whether income tax is payable or not. It is your responsibility to comply with all your tax obligations.
How will the loans be repaid?
Between six months to one year before your loan term ends, we will ask you ether you would like to renew your loan or have the loan repaid. This gives us time to make plans accordingly.
If you would like your loan repaid, we would seek to do this from a combination of capital accrued and new lending. If many lenders wish for their loans to be repaid at the same time, and if it’s not possible to find enough new lenders, Homes with Purpose would look to sell properties in order to pay back lenders.
What is the guarantee that I will get my money back?
Homes with Purpose expects to repay you the full amount of your loan value at the repayment date. However, with an unsecured loan we are unable to offer any guarantee regarding full repayment. We therefore encourage you to consider the loan carefully. Homes with Purpose works hard to manage the various risks involved.
Can my church / business make a loan?
Yes, we can accept loans from organisations
What happens in the event of my death?
The loan will be repaid to your executors within three months of receiving a copy of your death certificate unless you have made provisions in your will for it to be forgiven on your death. If the loan is forgiven it would become a gift to Homes with Purpose and may be exempt for inheritance tax purposes. Around 20% of lenders offer to forgive the loan in the event of their passing.
Can I gift my loan?
Yes, and we are delighted when people do this at the end of their loan term as it enables us to retain, and purchase more, properties, in the future. Gift Aid may also be possible at the relevant time.
How do you protect my data?
Find out more via our privacy policy
Still got questions?
Contact us
NB. The content on this website does not constitute legal, financial or tax advice. Appropriate legal, financial and tax advice should be sought.
