A Midlands-based social enterprise has come to the rescue of My Home Finance – the affordable loan scheme launched by the National Housing Federation to beat loan sharks and doorstep lenders.
In a deal that will enable thousands of people to continue accessing affordable small sum loans, Street UK has thrown a valuable lifeline to customers of the finance company by taking over its loan portfolio.
Street UK - a Community Interest Company established in 2000 – has a track-record of providing affordable credit to people previously turned away from banks and building societies.
Since its launch, Street UK has approved 32,000 loans, providing more than £15.3 million to customers who have each saved over £242 when compared to an equivalent loan from a high-cost lender. This total saving of over £6.7 million is effectively put back into the local economy.
Martin Hockly, CEO of Street UK, confirmed the take-over, which will create five new roles for frontline staff across the region.
“With 16 years of ethical low-cost high street loans experience, we are in a prime position to acquire My Home Finance’s loan portfolio,” he said.
“It will allow Street UK to provide affordable finance to around 6,000 people across the Midlands who would otherwise have been stranded and at risk of turning to loan sharks or high-street lenders.
“The take-over will enable us to continue helping existing My Home Finance customers in the West Midlands, in addition to those housing association tenants who live outside the region.”
My Home Finance (MHF) was established by the National Housing Federation to offer credit and related services in order to promote financial inclusion.
It began to pilot its services across the West Midlands in 2010, catering for people who could not obtain vital credit from banks, building societies or credit unions. Its offer included basic bank accounts and savings, as well as small sum loans. The pilot was funded by the Department of Work and Pensions (DWP), various social landlords and Wates Giving.
The pilot scheme demonstrated a considerable need for such services, which were rolled out across the UK and financed largely by social landlords, until it was announced earlier this year that My Home Finance was seeking expressions of interest from bidders for the business.
Laura Kelly, from Liverpool, has been a My Home Finance customer since 2015.
“Debt is a problem that can quickly escalate – there is no point pretending that it will simply go away,” she said.
“My Home Finance provided an affordable loan that enabled me to regain control of my finances.”
She added: “I’m so pleased that Street UK has agreed to take over; there are thousands of people out there who need this valuable support and who would have been left stranded, or even worse at the risk of loan sharks or payday lenders.”
A subsidiary of registered charity Street UK Foundation, Street UK operates on a not-for-profit basis, with interest received from loans used to cover costs, rather than providing dividends for shareholders.
For further information please visit https://www.street-uk.com/