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Home improvement loans

If you are you looking to undertake home improvements but need help to make upfront payments, we may be able to help you with a Home Improvement repayment loan.
Loans are made available at our discretion, and are available to repair and improve the homes of owner-occupiers, landlords and tenants with a repairing obligation. The loans must be used to contribute to improvements that ensure your home is safe, warm and secure.
The maximum repayment period is 10 years for an owner-occupier or tenant, five years for a landlord.

Who can apply

Owners of substandard houses, including:

  • Owner occupiers
  • Landlords
  • Developers
  • Charities/third sector

Priority will be given to homeowners in the first instance and to landlords that join our Social Lettings Agency, offer affordable rent, or offer nomination rights over landlords that rent on the open market.
You must be able to afford the loan repayments. An affordability check will be carried out in order to ensure you can meet the repayments.

Applicants must not have adverse credit history, including:

  • County Court Judgements (CCJ)
  • Individual Voluntary Arrangements (IVAs)
  • Debt Relief Order (DRO)
  • Bankruptcy (within last six years)
  • Company insolvency/liquidation
  • Outstanding debt to us at the time of making an application

What type of work can I have?

Works undertaken with loan funding must contribute to making your home warm, safe or secure, although there is no requirement that your home must meet all of these criteria - the loan could be targeted at one key element.

Home Improvement Loans are made available to support the following elements:

  • Substandard Housing (Cat 1 / High Cat 2 Hazards / Welsh Housing Quality Standard);
  • Repair, Fire Safety or Security;
  • Empty Homes (Renovation / Conversion);
  • Energy Efficiency (ECO top up);
  • Group Repair Schemes / Envelope Schemes;
  • Top up to Disabled Facilities Grants.

This is not an exhaustive list and if the works contribute to making the property warm, safe or secure, then it may fall within the terms of the scheme. 

What is the maximum loan I can get?

Loan applications can be made for between £1,000 to £25,000 per home. The loan amount will be worked out according to the cost of the works. We will base this on our schedule of rates. The work must be carried out by a contractor on our Registered Builders List.

We will also take into account your personal affordability. The loan amount may be adjusted to reflect an amount you can realistically repay.
The maximum loan application (for example for the conversion of a dwelling to individual flats) is £150,000.

The loans are interest free, providing there is no default on the loan. If the loan repayment is not met or there is other breach of conditions, the total loan amount will become repayable and interest will be due on the amount remaining. Interest will become due as detailed in the Loan Facility Agreement.

A one-off administration fee will apply that may be paid over the term of the loan or paid up front.

For loans taken over up to three years, the fee will be 10% 

For loans taken over four to 10 years, the fee will be 15%

What are the loan conditions?

  • The works should be completed within 12 months of the approval, unless otherwise authorised
  • Payments will be made on completion of all work. Interim payments may be made in some circumstances
  • Full repayment of funding given through this scheme will be required in the event of transfer of the title of the property or sale of the property
  • Loan amounts and repayment schedules will be determined by us and are subject to minimum repayment amounts (£50/month for owner occupiers and £100/month for landlords)
  • You must agree to make the monthly repayments via Direct Debit
  • The loan will be secured on your home that will bind you and any successors in title. This charge will be registered in the local land charges register and thereafter registered with the Land Registry. 
  • Repayments will begin on the 15th of the first full month after final payment is made, as determined by us 
  • In the event of a default in loan repayment, the full remaining loan sum will become due, and interest will be bearable as set out in the Loan Agreement document.

Apply for a home improvement loan

How to contact us

For more information, contact the Home Improvement Team on 01554 899389 or email: schoptions@carmarthenshire.gov.uk.

Page updated on: 19/10/2017

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