Wessex Home Improvement Loans
Private Sector Housing Renewal Lending for the future
WHIL’s Objectives
To provide affordable
finance to lower income
home-owners, by
referral from Local
Authorities for essential
repairs, maintenance or
adaptation.
Wessex Priorities
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A social rather than a financial return
Partnership Working
Client Satisfaction
Improving the lives of vulnerable people
Administrative Efficiency
Delivering Excellence
Recycled Funding…
Lending
Repayments
The story so far….
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WHIL started lending in 2005
Original consortium of 10 councils
Now working with 19 Authorities
800 loans on our books
250 Applications in progress
£4 million funds lent to date
£1 million funds repaid and recycled
No bad debt and minimal default
High Client Satisfaction Rates
Loan Scheme Diversification
WHIL Schemes
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Home Improvement Loans
Loans to Landlords
Disabled Facilities Loans
First Time Buyers’ Repair Loans
First Time Buyers’ Deposit Top-Ups
Renewable Energy Loans
Gypsy and Traveller Loans
Static Park Home Loans
Home Improvement
Loan Scheme
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Referral by LA – council has control
3 Basic Loan Types
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Capital Repayment – 4% Fixed
Interest Only – 4% Fixed
Interest Roll-Up – 6% Fixed
Flexibility for Interest Free Loans
Fixed Loan Terms – Up to 15 years
Fixed Rates and Fixed Repayments
Secured with Equitable Charge
Partnership Working…
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Local Objectives (Policy)
Good Relationships
Effective Communication
Link between client and LA
Flexible response to changing
LA requirements
Responsible Lending
Audit Accountability
Customer Focused
Approach
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Home Visits
Financial Assessment
Support / Time
Reassurance
Link between client and LA
Individuality – each situation different
Responsible Lending
The Challenges
A Growing Demand – The difficult economic climate
means that more people need more help.
Limited Capital – The ring-fenced funding for Private
Sector Housing Renewal has been abolished.
Limited Revenue – Government cuts mean that
councils have less funding to support subsidised loans.
Attaining Financial Sustainability - We want to grow
our loan book so that the value of repayments covers
the value of new loan demand.
Meeting the Challenge
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Influencing Local Priorities
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=> Attracting New Capital
=> £900k added by partner councils in 2011
Borrowing Commercially
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=> Banks and Charitable Funders
Improving Efficiency
=> WHIL has reduced its cost base by 26% in 2011
Diversification
=> Supplementary operations and income streams
Campaigning and Lobbying for PSHR
Future Financing ?
 Politically - Vulnerable homeowners can’t
be forgotten in the long term
 Financially - Grant Funding is no longer a
viable option and loans must be made to work
For the foreseeable future: Continuing pressure on limited funds
 Some ‘not-for-profit’ providers may not survive
 Commercial solutions may play a more
prominent role
Any Questions?