Wessex Home Improvement Loan Scheme Andrew Wallace Director Wessex Home Improvement Loans

Who are Wessex Reinvestment Trust? Established in 2002 as a Social Enterprise The first rural Community Development Financial Institution Delivering financial inclusion for vulnerable groups, particularly in rural areas Wessex Home Improvement Loan Scheme

Three main areas of activity: 1. Business Loans 2. Community Assets 3. Home Improvement Loans Wessex Home Improvement Loan Scheme

The Wessex Home Improvement Loan Scheme Our Objective To provide low interest rate home improvement loans to finance ‘Decent Home Standards’ work which will assist older, low income homeowners to maintain their property and continue to live independently.

Key elements of the Scheme Close partnership with 10 Local Authorities Cost effective ‘recycled’ capital funding A capital supplement from the Private Sector High quality ‘client focused’ service by Wessex Fixed low interest rate for the client Simple and straightforward loan products Equitable Mortgage as security No private profit for Wessex – A ‘social dividend’ Wessex Home Improvement Loan Scheme

Loan Types 3 Basic Products – (Up to £15,000 over 15 years at 3% fixed)  A Capital and Interest Repayment Loan  An Interest Only Loan  An Interest Roll-Up Loan This third option is ideal for clients who cannot afford to service a loan as interest is allowed to accumulate without monthly repayments. Full repayment of interest and capital is made from sale proceeds At 3% interest it takes 23 years for the value of compound interest to equal the value of outstanding capital Clients must be aged over 70 to qualify for Interest Roll-Up Wessex Home Improvement Loan Scheme

Current Activity 400 referrals in less than 3 years Over 100 live cases now being processed 143 Loans drawndown to the value of £720k In excess of £1.3million committed in total Only 1 loan in default And in the pipeline Geographic development – Local & beyond Diversification – DFG Loan development Wessex Home Improvement Loan Scheme

Why has this worked? Good initial groundwork – listening to the need Hact funding and support Developed in close consultation with L/A’s A positive approach to problem solving The availability of ‘start up’ capital The structure of the scheme’s financing The very low interest rate The potential for Private Sector Capital leverage Wessex’s ‘client focused’ approach to service The quality of our Loan Advisers Wessex Home Improvement Loan Scheme

Learning along the way  Consultation and communication – a ‘must’  Involve key stakeholders – Clients/HIA’s/LA’s  Simplicity is key to success  Don’t set unrealistic goals  Know and understand the market  Service quality is paramount in delivery  Efficient and effective systems are vital  Seek feedback – monitor and review  Nothing works without the right staff  Be prepared for the unexpected – State Aid! Wessex Home Improvement Loan Scheme

Service Quality – Delivering Excellence Satisfaction Survey results (84 client responses) 86% of clients rate our service as ‘Excellent’ 100% of clients rate our service as ‘Good’ or ‘Excellent’ Client Feedback “A pleasant, painless experience from start to finish; thoroughly recommended” Mr & Mrs L, (Somerset) “It’s a wonderful scheme with a very modest interest rate. The best thing of all is the thoughtfulness and helpfulness of the staff who administer the scheme” Mrs B, (Dorset)

Wessex Home Improvement Loan Scheme Our first client – A satisfied customer! Mrs Wheal lives in Somerset and needed some replacement windows. Because she has limited financial means, she was an ideal candidate for a Wessex Loan! No grant funds were available from her local council and she couldn’t afford to borrow from her bank. A low rate capital repayment loan from Wessex has enabled Mrs Wheal to have the work done and she can comfortably manage the monthly repayments. “I couldn’t have done it without Wessex”, she said

Thank you For Listening Wessex Home Improvement Loan Scheme