Gung Ho Loanstock

What is Loanstock?

Loanstock are fixed term loans made to the coop by individuals (for example you, your family, or your friends) or organisations (for example other co-ops).

The interest rate and term (length) of the loan is mutually agreed upon by the loanstock holder and the co-operative. When the term of the loan is complete (between three and ten years), the investment is repaid in full plus interest.

Why should I invest my money?

Loanstock provides an opportunity for those with wealth greater than their immediate needs to make a worthwhile social investment.

It is very difficult to invest your money ethically under the conditions we find ourselves in. Apart from a few specific schemes, it is hard to avoid your money being used to fund capitalist causes such as fossil fuels, weapons or some new shitty tech start up that will ultimately make the world a more miserable place.

Investing in a co-operative allows you to help build a better world where housing, work and other community assets are controlled democratically by the people themselves and not the rich. Although the co-op sector is small at this time, it has a big impact and could be said to provide the blueprints for rapidly scaling up the co-operative models when the opportunity arises.

Loanstock allows housing co-operatives to raise capital in order to carry out their objectives without requiring members to invest a fortune in order to join. It is an important co-operative principle that personal wealth should not be a limiting factor to membership.

Why is Gung Ho seeking loanstock?

We are seeking at least 7000 GBP of loanstock to replace existing loans that are due to be paid back. This will ensure our cash flow is healthy while we pay off our mortgage.

We’re looking for a minimum investment amount of 1000 GBP.

Do I get interest?

Yes (if you want). You can choose how much interest you would like to receive (0-4%). When we receive your application, we may get in touch to see ask whether you are able to shorten or extend the term based on the interest you ask for.

Many investors choose to ask for no interest in order to better support the movement.

How and when will interest be paid?

Interest will be paid at the end of the term of the loan (i.e. when it matures).

Why not go to a bank for the loan?

One of the advantages of loanstock is that it cuts out intermediary services and their cost, so the full amount goes directly to the co-op, as mentioned above. Furthermore, we would prefer to pay interest to our investors who support what we are doing and want us to succeed.

If you do invest in us, you are helping create long-term, affordable and secure housing which won’t be sold off for private gain. Unlike banks and other forms of investment, we are 100% transparent with your money, and you will be kept up-to-date with how your money is being used.

What about tax?

The co-op does not deduct tax from the interest. It is the investor’s responsibility to declare the interest in their tax returns.

Can I decide to withdraw my investment whenever I want?

Investments will generally be returned with interest at the end of the term you initially choose. We will consider all requests for early withdrawal of an investment, and may return the invested money (with interest accumulated) if it is financially viable for the co-operative to do so. However, there is no guarantee that we will be able to fulfill these requests.

Why is the loanstock unsecured? Does that mean I won’t get the money back?

In short, no it doesn’t mean that. ‘Unsecured’ means that the co-operative does not offer investors any collateral against the loan.

However, In the unlikely event that things do go wrong and the co-operative fails or defaults, it is very likely that the house would be sold in order to repay investors. This is an extremely rare occurrence among housing co-operatives and they have an excellent track record.

Investment in Gung Ho Housing Co-operative should be seen as a social investment rather than a means to financial gain. If you are in doubt about investing, you should consult an Independent Financial Adviser with specialist knowledge of social investments.

This page is not an investment advertisement within the meaning of the Financial Services and Markets Act 2000 or a prospectus within the meaning of the Prospectus Regulations 2005.

I’m not sure if I want to invest, can I make a donation instead?

Yes. If you’re not interested in investing for whatever reason, you can also make a donation. Please get in touch via e-mail if this is of interest.

I’d like to invest, what do I do now?

Please get in touch and we can send you an application form.

How can I get more info?

Drop us an e-mail and we’d be happy to answer any questions.