Loan terms and conditions
These are the terms and conditions of a Mission Housing loan. Please read carefully, and contact us if you have any questions.
What these terms cover. These are the terms and conditions on which we provide a facility to you for the provision of loans to Mission Housing (MH).
Why you should read them. Please read these terms carefully before you submit your application to us. These terms tell you who we are, how we will provide services to you, how you and we may change or end the contract, what to do if there is a problem and other important information.
When we refer to ‘you’ in the loan documents, we refer to you as a lender to MH.
1. INFORMATION ABOUT US AND HOW TO CONTACT US
1.1 Who we are. We are Mission Housing Limited (17128R) Registered Society under the Co-operative and Community Benefit Societies Act 2014 with its registered office at 8 Belmont Hill, London, SE13 5BD.
1.2 How to contact us. You can contact us by telephoning us on 020 8318 4432 or by writing to us at info[at]missionhousing.org.uk or 8 Belmont Hill, London, SE13 5BD. If you have a complaint, write to or telephone us. Please note that MH will not tolerate verbal or physical abuse towards its staff.
1.3 How we may contact you. If we have to contact you we will do so by telephone or by writing to you at the email address or postal address you provided to us in your application.
1.4 "Writing" includes emails. When we use the words "writing" or "written" in these terms, this includes emails.
2 PURPOSE
2.1 To purchase affordable property on behalf of Christian workers and volunteers (“Missional Workers”) to enable them to live where they work.
3 ELIGIBILITY
3.1 Applicants must be resident in the United Kingdom and be at least 16 years of age. In the case of joint applications, all must sign.
3.2 Applications to MH for the Fixed Rate Loan or Equity Loan (together the Fixed Rate Loan or Equity Loan will be referred to as the MH Loans) may be refused by the Board of MH without giving any reason. A contract will not exist between us until we have notified you that your application has been accepted in writing and cleared funds have been received by MH from you via a personal cheque or bank transfer.
4 REPAYMENT
4.1 The Fixed Rate Loan shall be repaid at the end of the term to the bank account details held on the pledge application form for either MH Loans. It is your responsibility to update those records during the loan period, if necessary.
4.2 Interest may be payable on a Fixed Rate Loan in accordance with the percentages and frequency you stipulated on the application form.
4.3 Interest is payable after deduction of tax at the prevailing basic rate and an R185 will be sent with the repayment. If you are exempt from tax please send the relevant documentation confirming exemption with your application form.
4.4 Shortly before the maturity date MH will send to you a notice inviting you to extend your MH Loan or request confirmation you wish the MH Loan to be repaid at the end of the term. Extended MH Loans can be reissued on different terms to the existing MH Loans at MH’s discretion.
4.5 If the repayment is rejected by your bank then MH shall continue to earn interest until the amount is claimed and updated bank details are received. MH will write to you to request updated details. In respect of the principal which remains unclaimed for a period of 5 years from the date first rejected by your bank, it will be deemed a gift to MH and interest will no longer be paid.
4.6 In the event of your death the MH Loan will be repaid to your estate even if the term of the MH Loan has not expired within 3 months of receipt of your death certificate. Unless you have indicated that the MH Loan will be forgiven on death when it would become a gift to MH and may be exempt for inheritance tax purposes. Please note that you should make your own queries regarding any tax liability.
4.7 With regards to Equity Loans, this type of loan is linked to a property and the property may be sold before the end of the term of the loan. The Repayment Sum is calculated by multiplying the Sale Proceeds from the property by the Relevant Percentage, provided the sale is at arm’s length and is for the full market value.
4.8 If your Equity Loan is linked to a shared ownership property and the shared owner wishes to staircase up under the shared ownership lease, the Repayment Sum will be calculated by multiplying the Market Value, by the Relevant Percentage. Please note that staircasing payments may not be the outstanding equity proportion in the Property and it may be that smaller proportions such as 5-10% of the equity will be sold at one time.
4.9 MH shall apply to an independent RICS valuation surveyor (the Valuer) to determine the Market Value of the Property within 10 business days of service of the shared owners notice. The Valuer’s determination will be final and binding on all parties. You will receive your Relevant Percentage in relation to the Equity Loan based on the value determined by the Valuer within 20 business days of the completion of the property sale.
4.10 Definitions for this clause 4 include:
Market Value: means the market value with vacant possession of a property at the time the shared owners’ notice has been received by MH, even if the shared owners intend to remain in residence.
Property: as defined in the equity loan agreement.
Relevant Percentage: as defined in the equity loan agreement.
Repayment Sum: is the amount to be paid to you in respect of the MH equity loan.
Sale Proceeds: means the gross sale price of the Property less the reasonable conveyancing costs and disbursements and VAT of the estate agents and solicitors acting in connection with the sale of the Property.
5 LOAN RANKING
5.1 MH Loans shall rank pari passu equally and rateably without discrimination or preference as an unsecured debt obligation of MH for the punctual payment of the principal and interest in respect of it and for the performance of all the obligations of MH with respect to the loan.
6 CANCELLATION
6.1 Your right of cancellation begins on the date of notification by MH of acceptance of your application and ends 14 days from that date. If you give notice of the MH Loan being cancelled within this 14 day period you will receive your money back with no interest. You may not cancel your application at any time thereafter until the MH Loan period has expired.
6.2 Under exceptional circumstances with 12 months written notice the loan may be cancelled and repaid, without interest or capital gain at the discretion of MH. Exceptional circumstances will be evidence of severe financial hardship of you.
7 ILLEGALITY
7.1 The MH may have to prepay the MH Loan, if:
7.1.1 any law or regulation is introduced or changed, or there is any change in the way any court or regulatory authority interprets or applies any law or regulation which:
7.1.1.1 complying with any direction, request or requirement (whether or not having the force of law) of any monetary agency, central bank, or governmental or regulatory authority; or
7.1.1.2 any judgment, order or direction of any court, tribunal or authority binding on MH, makes it unlawful to allow any MH Loan to remain outstanding.
8 INFORMATION
8.1 You have the obligation to supply MH with up to date contact details.
9 NOTICE
9.1 Any notice required to be given to MH under these Terms and Conditions shall be in writing (which includes email) and may be given either personally, by email, or by sending it by post in a prepaid envelope addressed to MH at its registered office or to such other address as MH may from time to time notify to the loan holders for the purpose.
9.2 A notice given or sent by you to MH shall not be effective unless and until received by MH's Company Secretary. Any other notice given or document sent by post within the United Kingdom shall be deemed to be received at the expiry of 48 hours (if sent by first class mail) or 72 hours (if sent by second class) after the time it is posted and in proving receipt it shall be sufficient to prove that the envelope containing the notice or documents was properly addressed, stamped and posted. In the case of email the notice shall be deemed to be served on the day of transmission if sent before 4.00pm and if sent after 4.00pm shall be deemed to be served on the next following working day.
10 DATA PROTECTION
10.1 By completing the MH Loan application form you consent to MH holding personal data about you in accordance with the General Data Protection Regulation. MH does not sell or exchange mailing lists. In signing the application form you (each of you if more than one is applying) confirm you understand that the personal information that you have given on the application form and give during the term of your loan will be retained by MH on computer and other records. You also understand that your personal information and details may be:
10.1.1 used to process your application; provide the services you request; deal with enquiries you make or authorise to be made and contact you regarding your loan;
10.1.2 used for market research purposes; developing products and services; statistical business analysis; and creating and maintaining a customer profile;
10.1.3 disclosed to appropriate regulatory authorities (including regulators of voluntary codes of practice); auditors; any other body having legal right to the information or anyone you appoint to administer or operate your holding of the loan;
10.1.4 used to investigate complaints and disclosed for auditing purposes;
10.1.5 used to check your identity to ensure MH meets money laundering regulations;
10.1.6 used to identify and tell you (by telephone, post or other electronic media) about any products and services that might be beneficial to you.
10.2 MH will not share any information about you and your loan to any third party for marketing purposes. You have the right to receive a copy of the information we hold about you if you request such disclosure in writing.
11 MONEY LAUNDERING
11.1 MH complies with the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2014, the Proceeds of Crime Act 2002 and other rules and regulations relating to money laundering. Accordingly MH is required to verify the identity of any applicant. You may be asked to provide further details about yourself. If satisfactory evidence of identity is not provided this may result in delays to processing your application and may even result in it being rejected. Any monies then returned to you will be without interest.
12 ASSIGNMENT
12.1 A MH Loan is not transferable in any circumstances.
13 GOVERNING LAW AND JURISDICTION
13.1 The laws of England & Wales apply to this contract. The courts of England and Wales have exclusive jurisdiction. English language is the definitive language.
YOU SHOULD KEEP A PAPER COPY OF YOUR APPLICATION FOR YOUR RECORDS.
Annex – EXTRACT OF THE RULES
BORROWING
7. The Society shall have the power to borrow money from its Members and others in order to further its Objects providing that the amount outstanding at any one time shall not exceed £100,000,000.
8. The Society shall have the power to mortgage or charge any of its property, including the assets and undertakings of the Society, present and future, and to issue loan stock, debentures and other securities for money borrowed or for the performance of any contracts of the Society or its customers or Persons having dealings with the Society.
9. The rate of interest on money borrowed, except on money borrowed by way of bank loan or overdraft or from a finance house or on mortgage from a building Society or local authority, shall not exceed 5% per annum or 2% above the Bank of England base rate at the commencement of the loan, whichever is the greater.
10. The Society may receive from any Person, donations or loans free of interest in order to further its Objects but shall not receive money on deposit.