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Evaluation of the National Mortgage to Rent Scheme

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APPENDIX A

Stages in the Application and Assessment Process

The following diagram illustrates the stages in the application and assessment process highlighting the stakeholders involved.

stages in the application

APPENDIX B

Mortgage to Rent - Stakeholder Interviews

Topic Guide for Scottish Government RSLs and LAs

1. Introduction

1.1 What has been your organisation's involvement with the Mortgage to Rent scheme? And what is your role?

1.2 What do you understand to be the objectives of the MTR scheme?

1.3 What is the scale of demand for MTR locally/nationally? (for national stakeholders, probe for variation across country)

1.4 What is the scale of need for MTR locally/nationally? (for national stakeholders, probe for variation across country)

2. Administering the Scheme

2.1 How many applicants has your organisation dealt with - since the beginning of the scheme? In the past financial year (to 31 st March 2008)?

2.2 How easy is the scheme to administer?

2.3 What contact do you have with other agencies in relation to the scheme, for what purposes and how effective are relationships e.g. with:

  1. Scottish Government (formerly CS),
  2. local authorities
  3. RSLs
  4. Lenders
  5. Financial advisers
  6. Solicitors
  7. Surveyors
  8. Advice agencies such as CAB
  9. Insolvency agents
  10. Others

2.4 How clear are the rules of the scheme for the administrators and for applicants and are there areas where there should be more clarity?

2.5 Are there ways in which the scheme could be improved in relation to the following, e.g. are the rules/systems about right or if not how could they be improved

  1. Eligibility,
  2. Timescales,
  3. Property valuation,
  4. Subsidy,
  5. Equity retention,
  6. Treatment of repairs,
  7. Administrative allowances,

2.6 Do you have adequate training, guidance and resources to administer the scheme effectively?

2.7 Do other organisations you have contact with have sufficient training, guidance and resources to carry out their roles in relation to the scheme?

3. Circumstances of Applicants

3.1 Is the scheme used more by some types of people than others?

(Is that because)/Is the scheme more suitable for some types of people - for example?

Probe for different types

3.2 Is there any pattern relating to applicant housing circumstances e.g. how common are recent first time buyers, RTB, former RTB homes, other LCHO, are applicants typically cash poor/equity rich?

3.3 What circumstances have tended to lead to the mortgage difficulties experienced?

Probe for: relationship breakdown, loss of job, other changes at work, ill-health, increasing family size, age issues, repair problems/costs, multiple debts, any other typical characteristics?

3.4 Have the circumstances or types of applicants changed over time?

Probe for: have applicants' circumstances become more complex and does this impact on assessment?

4. Application Process

4.1 How widely known is the scheme in general amongst the public and how do individuals in mortgage difficulties come to know about the scheme?

4.2 What is the first point of call of applicants?

Probe for who makes referrals to MTR scheme

4.3 Do applicants tend to explore other options before coming into contact with the MTR scheme?

4.4 Describe the steps an applicant needs to go through to submit an application?

4.5 How onerous is the process of applying? E.g. time, documentation required, number of agencies applicants have to be involved with, complexity of process.

4.6 Could the process be made easier for the applicant? If so, in what ways?

5. Assessment of applications

5.1 What proportion of applications are successful?

5.2 What are the main reasons for unsuccessful applications?

5.3 What proportion of applicants withdraw before their application has been assessed?

5.4 At what stages do people withdraw their application and what are the reasons for withdrawing?

5.5 How common is it for applicants to be asked to seek additional advice before continuing with a claim for assistance under the MTR scheme.

5.6 Are the value criteria appropriate or should they be changed?

5.7 How is income dealt with under the scheme - is this appropriate?

5.8 Do you know what people who have been unsuccessful/withdraw do - e.g. are they evicted, do they move home, do they seek assistance through private sector schemes, do they become homeless?

6. Landlord View on Property Type and Condition ( SG interviewee to be asked in relation to scheme as a whole)

6.1 What types of property have you taken on through the scheme (flats/houses, older/modern)? Are there any types of property you would not take on e.g. conversions, multi-storeys etc.

6.2 What property values have been approved? Are these appropriate? Should they be changed in any way?

6.3 What level of repairs have the properties required? Value, extent, type?

6.4 Has property condition ever resulted in your organisation (any organisation, if respondent is SG) deciding not to proceed with an application?

6.5 Are valuations of properties and/or assessments of conditions ever challenged by applicants/ their lenders/advisers?

6.6 Have the properties taken on by your organisation (any organisation, if respondent is SG) been more expensive to maintain than other stock?

6.7 Are there any management issues which are different for MTR properties than for the rest of your stock (any organisation, if respondent is SG)?
( Probe to do with tenant or stock e.g. aspirations, isolation of stock, future lettability of properties)

6.8 In the longer term (after MTR applicant has moved on) would you (any organisation, if respondent is SG) consider retaining or reselling properties obtained under MTR?

7. Sustainability of Solutions: What happens to successful applicants?

7.1 Do successful applicants remain as tenants for significant periods of time and if so, for how long? Is the pattern different for different types of tenant?

7.2 Do MTR tenants get into rent arrears more/less often than other tenants?

7.3 Do MTR tenants require/receive counselling in relation to debt and/or rent payment responsibilities when they become tenants?

7.4 Do MTR tenants return to owner occupation? If so, what proportion?

8. Potential Developments

8.1 Should the scheme be more widely publicised?

8.2 Should there be more resources directed towards the scheme?

8.3 Should the number of approvals be increased?

8.4 Should the property values be changed?

8.5 Should the respective roles of Scottish Government / LAs/ RSLs change e.g. form current split where Scottish Government carries out assessment and identifies landlords?

9. Strategic Issues

9.1 What is the role of the MTR scheme in practice - locally and nationally - and does this differ from its stated objectives?

9.2 Are there different market areas/geographical areas in which MTR operates and are some of these more appropriate than others?

9.3 Are there other, more cost effective or more appropriate methods of meeting the objectives of the MTR scheme?

Probe: lender forbearance, legal processes around possession or bankruptcy; safety nets ( ISMI, MPPI, ASU, CI)

9.4 Would shared equity schemes be a more appropriate way of meeting the needs of some MTR applicants?


Probe for: anticipated problems or benefits from this; are clients in suitable circumstances for this option to be feasible.

9.5 Is the role of MTR complementary with LCHO measures such as shared equity schemes and shared ownership? If yes, please explain.

Probe: is there a role for Mortgage to Shared Ownership or Mortgage to Shared Equity Scheme

9.6 Are you aware of any private Mortgage to Rent schemes? If yes, what is your view of these schemes?

Probe for whether these are/could be /should be alternatives to the Government's MTR scheme.

9.7 How successful is the MTR scheme? Should it continue to receive funding?

9.8 Are there any other issues in relation to the MTR scheme which you would wish to raise?

APPENDIX C

Mortgage to rent - Interviews with Applicants

Mortgage to rent - Interviews with Applicants

Mortgage to rent - Interviews with Applicants

Mortgage to rent - Interviews with Applicants

Mortgage to rent - Interviews with Applicants

Mortgage to rent - Interviews with Applicants

Mortgage to rent - Interviews with Applicants

Mortgage to rent - Interviews with Applicants