represents english has 1,000 members (99% coverage) 2 million homes for 5m disadvantaged

Represents English HAs

1,000 members (99% coverage)

2 million homes for 5m disadvantaged

Financial exclusion

No access to mainstream finance

No credit history

No affordable answer to urgent needs

Must borrow from high cost lenders

Consumer borrowing

1.2 tn mort-gaged

149bn main-

stream unse-cured

65bn non-standard unsecured

The Credit Gap

Doorstep/payday/illegal

Creditunions

Banks

Debt spirals

Rent arrears

Health/social issues

Member concerns

Federation Response

National, sustainable social business

Small sum lending & allied services

Long-term financial plan

Launch

Launch

Shops

Wolverhampton

Birmingham City

Worcester Northfield

Hereford Coventry

CreditBasic bank accountsSavings accountsMoney advice  

Services

Process

Initial contactAppointmentInterviewDecisionDisbursementMoney advice

Banks + Credit union

MHF Home/payday (IML)

Loan shark

The annual cost of credit

£6 £13 per £100

£30 per £100

£75 - £100 per £100

£100 + per £100

Good credit historyShare based & can’t take high risk percentage

All high risk but no further subsidy required

High risk, flexible, personal

Female, 30-40yr, welfare benefit, social

housing

Partners

Housing Associations

So far…

Loans: 9,800

Average loan: 340

Aggregate lending: £3.3m

Est. aggregate savings: > £2m

Savings Accounts

46%

Age

39%

26%

25%

10%

30 or under31 - 4041 - 5051 onwards

Household make up

31%

18%

44%

7%

Applicant onlyCouple (with child)Single parentCouple (no child)

Future plans

Consolidate WM

Roll out

Refine model

‘One-stop shop’

Future plans

Capitalisation

Loan note offer

5 years at 6%

Dual return

Thank you tess.pendle@housing.org.uk