Mortgage Rescue delivery, lessons learned and close down

1. Mortgage Rescue delivery, lessons learned and close down NHAS event – ‘Preventing Repossessions for Homeowners’ Graeme Hough, HCA 12th March 2014

2. Mortgage Rescue delivery • £450m has been spent assisting c. 5,700 households to remain in their homes from 2009/10 to current • Will reach close to £500m and over 6,000 households by the end (estimated 20,000 people) • Mortgage Rescue completions in 286 out of 293 local authorities in England (outside of London) • Many more households presenting with mortgage difficulties have been assisted through other avenues apart from MRS - DCLG estimate is about 8 -10 households assisted for each household that goes through Mortgage Rescue

3. MRS referrals by month 2009-2014

4. MRS completions by region

5. Mortgage Rescue impact ‘ Despite the sadness at no longer being able to think that I can leave something for my children in later life I have the relief of knowing that the nightmare of the last 4 or 5 years is over. This would not have happened without the Mortgage Rescue Scheme. I daren’t even think of what may have happened to me and the kids without this scheme.’ (anon) ‘ The Mortgage Rescue Scheme has transformed our lives. The fact that my children are now more settled, have been able to stay in their school and close to their friends more than compensates for the fact that we no longer own our home. Although our problems continue the biggest one has now been removed.’ (anon)

6. MRS: lessons learned - 1 Improved joint working between organisations Improved links between Housing Options teams and CABs/Money Advice – link between debt work and homelessness prevention is better recognised MRS as an option has allowed households and others to ‘buy time’ to investigate all, and the best, options Improved quality of service, priority and resources attached to money advice within LAs

7. MRS: lessons learned - 2 Improved financial management skills of households as a result of detailed debt advice Recommended 3-year tenancy provided households with security and certainty MRS particularly helpful for households with a disability where alternative, suitable stock in social or private sector not available (includes DFG where a saving to the public purse) Repairs carried out to properties improves the stock and living conditions Link to improved health and reduced stress by providing stability

8. MRS: lessons learned - 3 Varied availability of, and commitment to, MRS with the focus on local delivery – LA resources, syndication issues, etc Lack of household engagement – crucial to the MRS process Negative equity a barrier although lenders and others took a more flexible approach over time Lack of consistency in approach and process by those involved 2nd/3rd charge lenders, especially if not CML members RPs inflexible or risk averse approach to difficult cases/properties

9. Mortgage Rescue Scheme closure - 1 Government decision taken in June as part of the 2015/16 Spending Round not to provide further funding for MRS beyond the current programme Government agreed to extend the deadline for new referrals to the end of March 2014 2011-15 CSR resources unlikely to be fully committed - need to maximise referrals if possible to commit as much funding as possible HCA continue to operate MRS as flexibly as possible with regard to its rules and parameters on a case by case basis, but in a consistent manner with previously

10. Mortgage Rescue Scheme closure - 2 Deadline for new applicants – 31st March 2014 - refers to receipt of a full referral by the MRS lead provider - no lowering of referral standard to meet the deadline Key = managing expectations and considering all options available to households Where the deadline is not met the HCA will consider cases proceeding on an exceptional basis HCA likely to impose a deadline for cases to complete – September 2014? Any cases completing beyond March 2015 there will definitely be no funding available