Home Improvement Loans

Page updated on: 13/01/2023

If you need to make improvements to ensure your home is safe, warm and secure but can't afford to do the work; we may be able to help you with a home improvement loan. You can apply for a home improvement loan if you are an owner occupier, landlord, developer or Charity/third sector organisation. Although the loan must contribute to making your home warm, safe or secure, 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 can be used for:

  • Substantial defects to your property for example - dangerous staircase, hazardous electrics, leaking roof.
  • Topping up a Disabled Facilities Grant.
  • Fire safety or security;
  • Renovating or converting an empty home;
  • Topping up energy efficiency grants / loans 

This is not an exhaustive list and if the works contribute to making the property warm, safe or secure, then you may be eligible.  Once we've received your application, we will arrange a suitable time to assess your home and the work you would like to carry out. This is so we can identify any hazards or defects.  Loan applications can be made for between £1,000 to £25,000 per home. The work must be carried out by a contractor on our Registered Builders List.

The maximum repayment period is 10 years for an owner-occupier or tenant, five years for a landlord. There is a minimum repayment amount of £50 per month for owner occupiers and £100 per month for landlords. 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. Full details are 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% 

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

If you are successful then:

  • 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
  • You must agree to make the monthly repayments via Direct Debit
  • Repayments will begin on the 1st of the first full month after the work has been completed.
  • You will receive a loan agreement which outlines all of your responsibilities, we recommend you read this in full. 

It is with regret that due to the increasingly high demand for this form of assistance, the Authority has been inundated with requests and is now dealing with a large backlog of enquiries. As a result of this demand, enquirers will experience a significant wait for any financial assistance as we have fully committed the allocated budget for this scheme. This scheme is now held until such time that we may explore possible, alternative funding options. At present, there is no guarantee that this will be successful. This should be taken into consideration when applying for a loan.

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