Lendology New Business Brochure 8pp A5 landscape

A partnership for private sector
housing improvements

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Contents

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Introducing Lendology Our
Mission
Founded in 2003, we saw an opportunity to support
local councils (no capitals) to provide affordable funds Driven by purpose, not profits,
to homeowners to maintain their properties. A change
in legislation meant central government withdrew Our our responsible lending
capital funding for grants to homeowners. We developed Vision delivers a positive impact
a proposal in partnership with a consortium of local to homeowners, through
councils to set-up a loan scheme meaning that unlike understanding the unique
a grant, funds invested would be recycled. We were
successful in our bid to the Government Officer for the All homeowners across the situation of every
South West and the loan scheme was launched and has UK have access to affordable household.
continued to grow.
finance to enable them to
Our growth is based on our ability to connect with
our council partners to develop partnership solutions live in a home that is safe,
to meet the diverse needs of their private sector
housing stock. As a social enterprise, we do not have
shareholders demanding dividends or profits, meaning
all of our interactions are based on what’s right for our
beneficiaries. We work closely with our partners to
develop shared reporting mechanisms and demonstrate
the value we add to their communities.

warm, and secure.

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We don’t have an algorithm to make our
lending decisions, call us old fashioned if you
want, we have people to make those decisions.

What started as a simple service to replace council rate means our partners can be sure that their funds are in
grant processes has developed significantly as we have very safe hands.
adapted our offering. We are now able to support loans
to homeowners for home repairs, adaptations to enable We recognise that every council has unique strategic aims
independent living, energy efficiency improvements and and objectives, opportunities and challenges and is likely to
renewable energy measures, as well as loans to bring empty have a variety of requirements to meet local needs. So when
properties back into use and to landlords to improve the it comes to working together, we know that one size doesn’t
condition of the private rental sector. fit all. That’s why we aim to fund the right solution for each
partner, whilst providing our expertise to ensure that the
Regulated by the Financial Conduct Authority (FCA), we scheme is manageable and meets the required objectives.
are subject to the same regulations as other major lenders,
but because we conduct a thorough and holistic financial We tailor our solutions by providing a clear roadmap to show
assessment, our arrears rate remains at less than 0.5% of the expectations of both parties, both during the initial set
our total loan book. We have transacted over £16million of up of the partnership and during the day-to-day running of
lending with £9million having been repaid to date and made the scheme.
available to new borrowers. Our industry beating arrears

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Set up process

Step 1 The service you are looking to provide, so a wide-ranging
discussion around who you are looking to lend to and
Agree the Terms over what timescale. The senior team at Lendology will
of Reference for provide their knowledge and experience to help draft
this key document. The Terms of Reference will enable
the Scheme the fees calculation for the delivery of the service.

Step 2 There are a Step 3 This can be as little as £100,000 or as
variety of options large as £1,000,000. We aim to lend
Clarify how capital to capitalise a Confirm how the funds as soon as the scheme is
will be decision for loan scheme, and much will be made operational however, the first loan is not
this investment available at the start normally drawn down for the first 1-2
your council. will be a decision months of “go-live” so, finances can be
for your council. of the scheme phased to meet demand.

Step 4 The cost of delivery is based on several factors
that are agreed as part of the Terms of Reference.
Lendology Our costs are primarily based on the activities
will confirm we undertake on your behalf.
activity-based
costs for scheme

delivery

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Terms of reference discussion includes

Item Overview

Partner Agreement This explains how we will deliver the service, the length of the agreement and the obligations
of both parties, including what happens when the agreement is terminated.

Addendums Overview

Funding This indicates how funds will be made available for Lendology to use. It includes how scheme
funds are added or removed, where funds are held, who has access to them, and who has the
authority to approve loans on behalf of the partner.

Marketing This will show how we aim to generate enquiries and the budget required, plus how we will
collaborate with your internal communications team and community groups to maximise
scheme awareness and uptake.

Training Showing how we will interact with team members in the Council to explain our services so
that they are able to refer/signpost clients. We will also work alongside local community
groups to explain the service to help raise awareness through these important local
connections.

Reporting Suite The provision of regular reporting to document loan enquiries, assessment outcomes, loan
drawdowns and declines. Our reports include data on communications activity and upcoming
marketing plans.

Account Management We will meet regularly at the start-up phase, and the way we meet will depend on your
requirements (face-to-face, virtual, and/or telephone). We will then agree the frequency of
meetings with scheme updates and any discussions around scheme expansion.

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Funding Options

Item Overview

Public Works Loan Board The PWLB lending facility is operated by the UK Debt Management Office (DMO) on behalf
(PWLB) of HM Treasury. It provides loans to local authorities, and other specified bodies, from the
National Loans Fund, operating within a policy framework set by HM Treasury.
Community Municipal
Investments (CMI) A CMI is a bond issued by a local authority direct to the public via a crowdfunding
platform. From the council’s perspective the bond finance is treated in the same way as
Existing Capital any other long-term borrowing.

You may have existing capital set aside to support private sector homeowners via your
existing grant scheme or loan process.

Bettercare Funding You may be able to access Bettercare funding to invest in the scheme, particularly where
your objectives are around supporting people to remain independent at home, leaving
hospital or maintaining their health and wellbeing in the community.

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Scheme Costs

Item Overview

Set-up fees These include project management, setting up a bespoke Loan Management System
process, and developing client facing paperwork and processes.

IT System fees The annual cost of supplying access to the live system to enable live partner access.

Handling scheme Responding to incoming understanding the project, obtaining the relevant documents to
enquiries go forward for an assessment. Also signposting when other services are more suitable to
meet the clients’ needs.

Completing the client Responding to incoming enquiries, undertaking a full financial assessment to understand
financial assessment, and the individuals’ income/outgoings/existing assets and liabilities to provide a Decision in
setting up the loan Principle. When the client is ready to proceed with an application, we will complete the
loan application pack and release the funds.

Annual administration For ongoing management and support of new and existing clients, including regular
reporting to partner stakeholders.

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Evidencing our Social Impact 91% of applicants reported that
the improvements to their
A key element for our existing partners is the social property had a positive
impact that is achieve via our lending in the community. effective on their health and
wellbeing.
Our Social Impact for 2020/21 has been calculated by the
Financial Inclusion Centre, and the data validated by an
external assessor.

85% of applicants said that the issues with their
roperty caused them stress, depression, or anxiety.

66%The home improvement resulted in

of applicants seeing a reduction in
their level of stress, depression, or anxiety.

82% of Lendology borrowers said that
after their home improvements
they had enough money to keep
their home in a decent state of
repair – compared to 61% before.

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£1.96 million £5.17of total investment generated million

worth of social impact – broken down as:

£151,916 £176,825 £597,111 £4,246,772
of financial of health and
of energy efficiency of physical/property health benefits wellbeing benefit
improvement improvements

£1This means that for every invested by Councils

£2.64 in social impactresults in being generated.

£1

8p + 9p + 30p + £2.17

Energy Physical Financial Health & £2.64

efficiency improvements health wellbeing

Investment + Improvements = Social Impact

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01823 461099 [email protected]
www.lendology.org.uk

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