Issue - meetings

This report asks the Executive to approve Council’s participation in a Regional Mortgage Assistance Loan Scheme called Breathing Space.  The Breathing Space Loan is an interest free secured loan to assist homeowners in difficulty with their mortgage or secured loan repayments.

RESOLVED: (i)         That Option 1 be approved and that Wakefield Metropolitan District Council be nominated to act as the administrative body and banker for the scheme.

                        (ii)        That the draft policy at Annex 1 to the report be approved.

                        (iii)       That Wakefield Metropolitan District Council be allowed to discharge the following functions for City of York under the provisions of the Local Government Act 2000 and the Local Authorities (Arrangement for the Discharge of Functions) (England) Regulations 2000, in accordance with the authority’s well-being powers under Section 2 of the Local Government Act 200:

·        Offering loans to the owners of properties who are in mortgage difficulties

·        Agreeing regional arrangements for deciding whether the amount of the loan to be paid on redemption of the mortgage should be deferred or repaid in instalments, or waived in whole or in part.

                        (iv)       That the policy to provide loan support to cover the costs of setting up the loan be approved.

REASON:      To enable the Council to participate in a regional scheme which will assist homeowners in difficulty with their mortgage or secured loan repayment and will provide another option for the Council in tackling house repossession and, ultimately, homelessness.

Note: Cllr Moore, having declared a prejudicial interest in the above item, left the meeting during consideration of the item and took no part in the discussion or decision thereon.

Members considered a report which sought approval for the City of York Council’s participation in a Regional Mortgage Assistance Loan Scheme called ‘Breathing Space’.

The Breathing Space loan was an interest-free secured loan to assist homeowners in difficulty with their mortgage or secured loan repayments.  Wakefield Council would be the Accountable Body for the scheme, which would work in a similar way to the existing regional home improvement loans scheme administered by Sheffield Council on behalf of Yorkshire and Humberside local authorities. 

To enable Wakefield to act as the Accountable Body, participating authorities were required to delegate certain functions to Wakefield Council.  Members were invited to decide whether to approve the policy to provide the Breathing Space scheme and allow Wakefield to discharge these functions (Option A) or not (Option B).  Option A was recommended, on the basis that it would add another, more flexible option to the Council’s tool box in tackling re-possession and, ultimately, homelessness.  A draft policy for the scheme was attached as Annex 1 to the report.

Officers confirmed at the meeting that the Wakefield Scheme (on which the Breathing Space scheme was based) had already helped about 28 households in its first year, as compared to a total of 7 York households assisted to date by the Golden Triangle Mortgage Rescue Scheme and the Government’s National Mortgage Rescue Scheme

Having noted the comments of the Shadow Executive on this item, it was

RESOLVED: (i)         That Option 1 be approved and that Wakefield Metropolitan District Council be nominated to act as the administrative body and banker for the scheme.

                        (ii)        That the draft policy at Annex 1 to the report be approved. ¹

                        (iii)       That Wakefield Metropolitan District Council be allowed to discharge the following functions for City of York under the provisions of the Local Government Act 2000 and the Local Authorities (Arrangement for the Discharge of Functions) (England) Regulations 2000, in accordance with the authority’s well-being powers under Section 2 of the Local Government Act 200: ²

·        Offering loans to the owners of properties who are in mortgage difficulties

·        Agreeing regional arrangements for deciding whether the amount of the loan to be paid on redemption of the mortgage should be deferred or repaid in instalments, or waived in whole or in part.

                        (iv)       That the policy to provide loan support to cover the costs of setting up the loan be approved. ³

REASON:      To enable the Council to participate in a regional scheme which will assist homeowners in difficulty with their mortgage or secured loan repayment and will provide another option for the Council in tackling house repossession and, ultimately, homelessness.

Note: Cllr Moore, having declared a prejudicial interest in the above item, left the meeting during consideration of the item and took no part in the discussion or decision thereon.