Residents of central Birmingham are welcoming My Home Finance, a new fair-priced financial resource. No longer must they be dependent on illegal loan sharks and doorstep lenders who take their hard-earned money. My Home Finance provides them with affordable and easily-accessed credit that can immediately improve their financial situation.
The National Housing Federation, supported by major housing associations and other companies, launched this non-profit service. Currently positioned as a pilot project, it provides low-income residents with access to loans of approximately £300. Borrowers are using the money to pay off their high-priced payday or doorstep loans or to purchase household items like furniture and appliances.
Bromford Group is one of the partners in this program and the company’s economic inclusion manager, James Walsh, thinks that the venture will make a great impact on the lives of low income individuals and social housing tenants. He remarked that it is shocking that for those who can least afford it, borrowing from a loan shark or doorstep lender is often the only option. The interest rates on these loans frequently range from 150 to 2,000 percent.
My Home Finance offers a 29.9 percent starting APR, a much more positive situation. Mr. Walsh remarked that this increases the chances the individuals will pay off the debt, with money left over to spend on necessities. In addition to the reasonable interest rates, My Home Finance branches provide assistance with savings, banking, and contents insurance.
The My Home Finance initiative provides another option for the 2.5 million UK residents who borrow from doorstop lenders. By encouraging people to save and better manage their finances, the program enables cash-strapped residents to improve their lifestyles. So far, the program is witnessing a positive response to its loans and other services. The shop on Erdington High Street has completed over 20 loans since it opened in the middle of December.