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New Shelter research published shows the outcomes of advice for struggling homeowners.
Since April 2009, Communities and Local Government (CLG) has funded Shelter and other providers to provide independent advice to homeowners wishing to apply for Homeowner Mortgage Support (HMS) or to seek more general advice about their mortgage debt. Shelter has set up a dedicated helpline, the Homeowner Helpline, as well as a team of designated advisers based in advice centres and courts around the country using this funding.
‘Results and Recommendations: Outcomes of advice for struggling homeowners’, includes information about the number of clients that Shelter has advised through the HMS advice funding stream and an analysis of the cost consequences of the advice. The research is based on the analysis of eighty case files and in depth interviews with thirty borrowers who sought advice from Shelter about their mortgage arrears. The report gives an insight into the real-life experiences of struggling borrowers by considering clients’ experiences of accessing and using advice services, the outcomes of that advice and clients’ housing hopes for the future.
Key findings from the report show between April 2009 and May 2010, Shelter has provided mortgage debt advice to over 7,000 households, of which more than 4,700 households were helped under Shelter’s Homeowner Mortgage Support contract. The report states each mortgage debt advice case costs the state £229 on average, making the provision of advice a low cost and a high value option. This is particularly important when compared to the cost of repossession, which is estimated to cost the Exchequer £16,000 (repossession of a vulnerable household).
Outcomes for clients are reported as:
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Since April 2009, Communities and Local Government (CLG) has funded Shelter and other providers to provide independent advice to homeowners wishing to apply for Homeowner Mortgage Support (HMS) or to seek more general advice about their mortgage debt. Shelter has set up a dedicated helpline, the Homeowner Helpline, as well as a team of designated advisers based in advice centres and courts around the country using this funding.
‘Results and Recommendations: Outcomes of advice for struggling homeowners’, includes information about the number of clients that Shelter has advised through the HMS advice funding stream and an analysis of the cost consequences of the advice. The research is based on the analysis of eighty case files and in depth interviews with thirty borrowers who sought advice from Shelter about their mortgage arrears. The report gives an insight into the real-life experiences of struggling borrowers by considering clients’ experiences of accessing and using advice services, the outcomes of that advice and clients’ housing hopes for the future.
Key findings from the report show between April 2009 and May 2010, Shelter has provided mortgage debt advice to over 7,000 households, of which more than 4,700 households were helped under Shelter’s Homeowner Mortgage Support contract. The report states each mortgage debt advice case costs the state £229 on average, making the provision of advice a low cost and a high value option. This is particularly important when compared to the cost of repossession, which is estimated to cost the Exchequer £16,000 (repossession of a vulnerable household).
Outcomes for clients are reported as:
- In 63% of cases reviewed the client was helped to stay in their home;
- In 18% of cases reviewed, Shelter was unable to help prevent repossession but assisted the client in another way;
- The most common form of arrears assistance was to help or advise the client to agree a new mortgage repayment plan with their lender, which was evident in 44% of cases reviewed;
- In a third of cases reviewed, immediate repossession was prevented; and
- In a quarter of cases reviewed, clients were helped to apply for some form of Government support.
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