In the KNOW. Maureen Ashcroft Housing Options Manager. Autumn Issue 5 IN THIS ISSUE... WELCOME to the Autumn edition of In the KNOW.

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1 In the KNOW Autumn Issue 5 IN THIS ISSUE... Page 1 - Welcome Page Mortgage rescue: The statistics Page 4 - Promoting the Mortgage Rescue service Page What is Mortgage Rescue? Page 7 - What are we doing in Knowsley to reduce mortgage repossesions? Page 8 - A day in the life of - Eileen Goodwin, Mortgage Rescue officer Page 9 - Mortgage Rescue saves family home Page 10 - Two years after Mortgage Rescue WELCOME to the Autumn edition of In the KNOW. The last few months have been as busy as ever at the Housing Options Service. Homeless prevention remains at the forefront of our work. The number of customers prevented from becoming homeless between April to June 2012 increased by 12% in comparison to the same period in Underlying trends confirm an increase in the number of customers seeking help. Customers seeking help have highlighted more complex issues in comparison to previous years. One of the most successful tools used in preventing homelessness in Knowsley is the Mortgage Rescue Scheme (MRS). Knowsley Council committed resources to fund a Mortgage Rescue Officer to deliver the scheme for residents within Knowsley who are experiencing mortgage arrears. In June, SHELTER published a research report - England Repossession Risk Hotspots 2011/12. The results within the report were based on 12 months of data for the financial year 2011/12. The hotspots identified were areas with the highest number of private homes where repossession claims had been issued by mortgage lenders. These statistics threw Knowsley into a media frenzy with the subject of repossessions highlighted on television (Granada Reports) and radio stations. To find out more about the repossessions in Knowsley, in comparison to other regions and the Mortgage Rescue Scheme, read this edition of IN THE KNOW. This issue has been dedicated to the subject and you can find out what Knowsley Council are doing to reduce the number of repossessions. Maureen Ashcroft Housing Options Manager 1

2 The statistics for Knowsley Region The table below highlights the number of repossessions by region. The Northwest was the region with the highest repossession rate. Number of claims 2011/12 Rate of claims per 1,000 private homes Number of hotspots in region North East North West Yorkshire & Humberside West Midlands East Midlands London East of England South East South West England In the North West of England there were 18 boroughs which were highlighted as hotspots for repossession claims. Rank (within region) Rank (national) Local authority Number of claims 2011/12 Rate of claims per 1,000 private homes North West Region 11, Knowsley Rossendale Rochdale Blackburn with Darwen UA Burnley Salford Blackpool UA Oldham Hyndburn Halton UA Manchester Liverpool Tameside Bury West Lancashire Bolton Wigan St Helens

3 The table below highlights the position of Liverpool City region. National Rank Local authority Number of claims 2011/12 Rate of claims per 1,000 private homes 2 Knowsley Halton UA Liverpool St. Helens Wirral Sefton The above tables highlights a worrying number of repossessions claims. However, they do not reflect the actual number of repossessions that actually occurred- some claims will have been resolved with repossession avoided. The actual mortgage repossessions across England for the first quarter of 2012 was 9,600 - the same as in the first quarter of This has broken the recent trend of year on year increases in repossessions, according to the Council of Mortgage Lenders. The trend has stabilised for the time being. Unemployment The higher rates of repossession claims are strongly associated with higher and increasing rates of unemployment. The average rates of unemployment in Knowsley has been found to be 10.4%. This shows a 3.1% rise within the last financial year. 3

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5 What is Mortgage Rescue? Mortgage Rescue is help that the Government can offer if: You are struggling to keep up with your mortgage payments You have had all the help your lender is offering and You are worried about having your home repossessed Local authorities have provision for people who have their home repossessed and need help to prevent them from becoming homeless. The Mortgage Rescue scheme can help people before the repossession stage to enable them to stay in their home, rather than being rehoused. If you are struggling to pay your mortgage, you may be eligible for the scheme if: You or someone you live with has a dependent child/children You or someone you live with is pregnant or You or someone you live with is elderly, ill or disabled You must also: Not own any other properties Have a yearly household income below 60,000 Be at risk of having your home repossessed Have a property valued at less than 135,000 Once you make contact with the Housing Options Service, we will look at your circumstances to decide whether or not you are eligible. We will need to make sure that you: Own and live in the property, and you want to stay there and You are in one of the three priority groups being targeted by the scheme We will pass your details onto a housing association who will make sure that: Your home is suitable for them to buy, (as they cannot buy homes which are in a poor condition) The value of your home does not exceed the limit for the Knowsley area, (as they cannot buy houses over a certain price (more than 135,000) Even if you are eligible for Mortgage Rescue, Knowsley Council is not obliged to offer this service as they may not feel it is suitable for you; or there may be a better option for you and your family. After the Mortgage Rescue Officer has referred you to a housing association for the scheme, it can take between four to six months, or longer, to complete the process. This is similar to the time it may take to sell a property as the process is similar. It involves having your home valued and negotiating with your lender and the housing association. It is very important that you maintain your mortgage repayments during this time. 5

6 If any colleagues, family or friends are struggling to pay their mortgage, signpost them to Knowsley Housing Options Mortgage Rescue Officer. You can contact the officer on we may be able to help. There are two options available under the Mortgage Rescue scheme: Equity Loan (previously known as Shared Equity ) Government Mortgage to Rent Housing Options will discuss with the customer the option which is most suitable for them as each option is aimed at people with different circumstances. Mortgage Rescue - Equity Loan The Equity Loan option (previously known as shared equity ) is where a housing association provides an interest only loan which is secured on your home. The loan is used to pay off part of your mortgage or any other loans which may be secured on your home. The loan can be between 25% and 75% of the mortgage value depending on how much help is needed to reduce monthly housing costs. The Equity loan option is most suitable for vulnerable families who are in serious financial difficulty, but would be capable of maintaining lower mortgage payments over a long term basis. Mortgage Rescue Mortgage to Rent The Government s Mortgage to Rent option is where a housing association buys the property. You would no longer own it, but you would stay there as a tenant. This option means that you do not have to sell your home and rent another property you can rent the home you already live in. The Mortgage to Rent option is suitable if mortgage payments to the lender cannot be maintained. For example it could be suitable if you: Have been unemployed for a long time and are unable to find work to pay the mortgage. Equity in the property is low or There are numerous debts secured against the property, e.g secured loans which have been taken out Getting advise as early as possible is crucial please signpost colleagues, family and friends living in the Knowsley area to Knowsley Housing Options Service. Contact us on we may be able to help more than you think. 6

7 What are we doing in Knowsley to reduce mortgage repossessions? The Housing Options Service, delivered by New Charter Housing is the main point of contact for tackling homelessness through mortgage repossession. The service can be contacted on Alternatively, you can call into the surgeries held at Kirkby One Stop Shop on Monday, Wednesday or Friday or at Huyton on Tuesday and Thursday. Surgeries are held between 9.00am pm. Knowsley has been recording data since the Mortgage Rescue Scheme (MRS) was first launched in Knowsley in January In line with the mortgage pre-court protocol, all lenders have to notify their local authority of pending action being taken against home owners. Following receipt of this notification, the Housing Options Service (HOS) will write to the home owner providing information/leaflet and contact details of whom to contact within the service. Once the home owner contacts the service, there are a number of preventative methods to assist those at risk of losing their home. The Mortgage Rescue Officer will: Provide advice and assistance Negotiate with lenders if applicable(including first mortgages and second secured charges) Refer all cases to the Knowsley Citizens Advice Bureau for debt advice Complete all paperwork in relation to Mortgage Rescue Support homeowners through the Mortgage Rescue process Look at all options to ensure the homeowner can remain in their home Access the repossession prevention fund for support Within the city region, Knowsley has delivered the highest number of completed Mortgage Rescue cases. This enables families to remain in their own homes by allowing them to become a tenant of the housing association that purchases the property. The number of homeless acceptances as a result of mortgage arrears has reduced for the third year within Knowsley. In 2009, homelessness (as a result of mortgage arrears) was within the top five reasons for homeless presentations. However during 2010, these homeless presentations fell below the top five reasons and have continued to maintain this level. City region Local authority Knowsley 17 Sefton 15 Liverpool 14 Wirral 14 St Helens 3 Number of MRS cases completed in 2011/12 7

8 A Day In the Life of a Mortgage Rescue Officer... Eileen Goodwin Today my day starts at the Knowsley office at the River alt Resource Centre. After checking s, I prepare for my only appointment today. It is with a family who are struggling to meet their mortgage repayments and are concerned that they may lose their home. During the interview, I assess their circumstances and look at all options available to try and help them to stay in their home. I discuss changing their repayments with lenders, extending the term of their mortgage, and arranging an appointment with Citizen s Advice for debt advice and to prepare a financial statement. Eileen Goodwin (If all options are exhausted, an application for Mortgage Rescue is completed). It turns out this family do meet the criteria for Mortgage Rescue, as they have breached a suspended possession order. I advise that I will contact their lender and if there is no room for negotiation, I will complete a Mortgage Rescue application with them. I also take a number of telephone calls with enquiries about the Mortgage Rescue scheme, from people with mortgage difficulties. A number of these cases have been referred from the triage service. In the first instance an information pack is sent out and an appointment made with the householder. Mortgage Rescue in Merseyside is administered by our lead provider- Plus Dane. The process can take several months and it is important to keep applicants up to date with progress. I spend part of my day contacting applicants updating them on the progress of their case, and if necessary chasing up information and documents from them. As it is the end of the month, I am required to provide information for KMBC regarding the number of enquiries we ve received; number of completions; and progress of cases. This takes up the remainder of my day. The role of Mortgage Rescue Officer is very rewarding. It gives me huge job satisfaction as it is an integral part of the Housing Options service. 8

9 Mortgage Rescue saves family s home Mortgage Rescue is a scheme designed to prevent families becoming homeless through repossession. Here we tell you how the service has helped to secure a family s home in Knowsley. Mr and Mrs D contacted the council after being signposted to Housing Options via Knowsley Housing Trust. The couple had been struggling to meet their mortgage repayments for 12 months and were faced with repossession of their family home in Huyton. Both Mr and Mrs D were working but Mr D was forced to give up work due to ill health, with very little chance of him being able to return to work. Fortunately, Housing Options were able to assist with the Mortgage Rescue scheme and Knowsley Housing Trust have now purchased the property, leaving Mr and Mrs D as tenants. Mr D comments on the experience: I feel like I ve been given my home back. This scheme is fantastic and more people should be made aware of it. I m forever telling friends and family about the scheme! Mr D also advised that the stress of possibly losing the family home had impacted greatly on his health and he now felt like a weight had been lifted off his shoulders. He also came up with some good ideas as to how we should promote the service. The council are now looking at a new advertising campaign, after taking Mr D s ideas on board. Mr and Mrs D are the 52 nd family in Knowsley who have been helped by the Mortgage Rescue Scheme. Introduced in 2009, the scheme is an essential part of the homelessness toolkit and an integral part of the Housing Options service. Mr and Mrs D outside their home 9

10 Two years after Mortgage Rescue The Mortgage Rescue Scheme has been in place for a couple of years now. Eileen Goodwin recently visited a family who were previous customers of the scheme to see how life was after Mortgage Rescue. Here is their story Mr C, his partner and four children have lived in their property since Mr C ran his own business, however due to the impact of the recession, his business folded and he was declared bankrupt in His home was also under threat of repossession and the family were faced with homelessness. In February 2010, Mr C approached the local authority for assistance. An application for Mortgage Rescue was completed and they were referred to Homeshub. The sale of his property completed in September 2010 and was purchased by a local registered provider. Two years on, Mr C confirms that Mortgage Rescue was The best thing ever. Shortly after completion of the process, the social landlord replaced his central heating system and carried out various minor repairs that were required. Mr C said he now has peace of mind with regards to the maintenance of his home. Mr C has now secured full time employment. His youngest child has now started full time school, so his partner is now in a position to look for part time employment too. His financial circumstances have improved greatly and the family are looking forward to a much brighter future. Mr C said he would advise anyone who is having problems with their mortgage to contact the Housing Options Service for assistance. 10

11 KNOWSLEY HOUSING OPTIONS HOW TO CONTACT US TELEPHONE MONDAY, TUESDAY, THURSDAY & FRIDAY WEDNESDAY: 9.00AM 5.00PM 9.00AM 4.00PM OUTSIDE OF THESE HOURS USE THE SAME NUMBER AND YOU CAN LEAVE A MESSAGE FOR CONTACT THE NEXT WORKING DAY OR IN EMERGENCY SITUATIONS YOU CAN SPEAK TO SOMEONE TO HELP SURGERIES AND DROP IN SESSIONS KIRKBY ONE-STOP SHOP MONDAY, WEDNESDAY & FRIDAY 9:30AM 1.00PM HUYTON ONE-STOP SHOP TUESDAY & THURSDAY 9:30AM 1.00PM info@knowsleyhousingoptions.org.uk LETTER KNOWLSEY HOUSING OPTIONS RIVER ALT RESOURCE CENTRE WOOLFALL HEATH AVENUE HUYTON L36 3YE If you need any help with translation, please see a member of staff. اگر برای ترجمه نياز به کمک داريد لطفأ به يکی از اعضای پرسنل مراجعه کنيد. Ak budete potrebovať akúkoľvek pomoc s prekladom, navštívte prosíme náš personál. Kung kailangan niyo po ng tulong sa pagsalin, hanapin lamang ang miyembro ng staff. Jeśli potrzebują Państwo tłumaczenia na Państwa język ojczysty, prosimy zwrócić się w tej sprawie do członka personelu. 如果您需要翻译帮助, 请与我们的员工联系 W W W. K N O W S L E Y H O U S I N G O P T I O N S. O R G