Homelessness can happen to anyone. This message rang true at the launch of a social and philanthropic investment strategy between Framework, an organisation for homeless and vulnerable people, and Nottingham Building Society.
The Nottingham has agreed to lend Framework £800,000 on commercial terms, out of a total of £1.1 million needed to provide 14 units of crucial move-on accommodation in Lincoln and Swadlincote in Derbyshire. These self-contained one bed flats will accommodate homeless people on their journey to living independently, whilst freeing up much-needed space in emergency accommodation.
The cost of the loan will be partly offset by saver’s investment in special Framework savings accounts where the lower the interest rate paid on their savings bond the cheaper the loan to Framework will be.
Speaking to What Mortgage, service user Ewa explained how the threat of homelessness is never far away from even the most unlikely candidates.
A teacher for 18 years, when Ewa lost her job and could not meet her mortgage repayments her home was repossessed.
She was at a loss as to where to go but her local council put her in touch with Framework.
“I was accommodated at Elizabeth House in Nottingham and given access to a solicitor and help to sort out my finances”, Ewa told What Mortgage.
“Then I was provided with Move-On accommodation and assigned a support worker. I had one payment a week in rent with no bills so I could manage that. The residence was really lovely; a self-contained flat with no shared rooms. It was very clean with regular health and safety checks and allowed me to get things together until I was in a position to start bidding on council property.
“The total time between losing my home and finding a new one was 14 months and I had constant support from Framework. I genuinely hate to think what I would have done without them.”
Ewa now volunteers with Framework, offering support to those in hostel accommodation, after experiencing the impact of their work. Her story is just one of many.
The pioneering project from The Nottingham gives savers the chance to support the building of homes for homeless people and is at the forefront of a new social investment strategy to address the shortage of specialist accommodation for homeless people across the East Midlands over the next three to five years.
Savers can choose from four accounts on various fixed rates and terms, investing in all four accounts if they wish. The Nottingham has also waived its administrative and usual lending fees for a loan of this type.
Framework’s Andrew Redfern said: “This is a great example of partnership working between two organisations which exist to benefit the communities they serve-one with a charitable ethos; the other as a mutual.
“We know that the quality of outcomes for vulnerable people is linked closely to the quality of their accomodation. In difficult economic times such accomodation is needed more than ever but finding the money to provide it is an increasing challenge, so Framework is becoming involved in social investment for the first time.”
The Nottingham’s David Marlow originated the idea of a loan backed by a range of dedicated savings products and has driven the project forwards; he has also participated in many other initiatives to support Framework. He commented: “One of the founding principles of The Nottingham was to help provide homes for people who otherwise could not afford them. This package of investment and support is an ideal way to show that we are as committed to that ideal today as the Society’s founders were more than 160 years ago.”
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