Obtaining community mortgage

Description

Obtaining community mortgage involves organizing collective efforts to secure affordable, long-term financing for low-income or marginalized groups to acquire land and housing. This strategy addresses barriers to homeownership by pooling resources, negotiating with lenders, and leveraging government or NGO support. Its practical intent is to remedy housing insecurity, prevent displacement, and foster community stability by enabling groups to access credit and legal tenure otherwise unavailable to individuals in vulnerable circumstances.

Implementation

Lightmoor new community (Telford, UK) was lent the first community mortgage in the UK. Lightmoor is a new self-sufficient, self-built village designed and created initially by 14 families. The homes are designed with land and workshops attached so that they have the means to make a living. Whilst they did not have the resources to raise they money for the village infrastructure in the usual way, their cohesion as a community made up the "sweat equity" which enabled them to be granted a "community mortgage".