Help with home improvements: council loans and grants

Are you thinking about making your home better with a loan but feel unsure about the costs and process?

You're not alone.

This guide will help with:

•  Understanding what a home improvement loan is
•  Learning about the best type of loan for home improvements
•  Knowing how to compare quotes to find the best deal
•  Learning the difference between secured and unsecured loans
•  Things to think about before taking a loan

Some local authorities offer loans or grants for qualifying repairs, adaptations or energy improvements. Availability, interest, security and repayment conditions vary; there is no general right to an interest-free government renovation loan.

We know loans can be hard to understand. That’s why this guide is simple and easy. 

How can I get money to fix up my house?

Most homeowners in the UK want to make some sort of home improvements, from a simple redecoration and repairs to a new kitchen or an extension. These projects cost money but there are ways to get the finance to fix up your home, not limited to:

1. Home improvement loans
2. Borrowing against home equity
3. Saving up from your regular income
4. Government home improvement loans

The content below will explain some options in relation to government home improvement loans, but we also explain the other ways to fund home improvements at the end of this guide. 

What grants are available for house renovation?

A grant may help with eligible work, but conditions can include approval before work starts, occupancy requirements or repayment if the home is sold. Check the award terms rather than assuming it can never be recovered.

These are mostly available for people with a disability who need to make changes to accommodate their needs, especially if they have a new disability which their property is not prepared for. Search for a disabled facilities grant to learn more! 

Government Schemes

Ask the local authority about its current housing-assistance policy, funding and eligibility. Support may be a grant, repayable loan or another arrangement; 0% interest is not universal.

To search for government home improvement loans in your area jump onto your local council website or pick up the phone. There may even be grants available to help you make the home improvements you desperately need. 

The Green Deal is closed to new applicants according to GOV.UK. Check current energy support through Help to Heat and your local council instead.

Can I get help without taking a loan?

There are no free government loans as you will need to pay the money back. Instead, you might be able to get a grant to help make improvements to your home. 

The Green Deal (green home energy scheme)

The Green Deal was a finance scheme for energy-saving improvements, not a grant or a loan paid directly to every applicant by government. It is now closed to new applicants.

Existing Green Deal arrangements can remain attached to properties improved under the scheme.

An existing Green Deal loan is repaid through electricity-bill charges. Buyers and tenants must be told about the arrangement before moving in.

Can I apply for a new Green Deal plan?

No. GOV.UK states that the scheme is closed to new applicants. Check current schemes and local eligibility before paying for an assessment or agreeing to work.

Support differs across England, Wales, Scotland and Northern Ireland. Use the current guidance for your location.

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Enquire about a secured loan through Loans Warehouse

Advertisement. Loans Warehouse is a credit broker, not a lender. Approval and terms depend on checks. Compare the full cost before applying. MoneyNerd may receive a referral fee. Your home may be repossessed if you do not keep up repayments on a loan secured against it. Fees may apply. Ask Loans Warehouse about any fees before you decide whether to proceed.

Other ways to fund home improvements

Other options include savings, suitable unsecured borrowing, a further advance, remortgaging or a second charge. Any help with borrowing costs has separate eligibility and repayment rules; do not assume government will pay the interest.

Compare total costs and affordability before taking out new debt.

1. Home improvement loan

A home-improvement loan may be secured or unsecured. Permitted use, rate, fees and repayments depend on the agreement; tell the lender what the money is for.

2. Borrowing against home equity

Homeowners with home equity can borrow against this equity in a  type of secured loan, either known as a second charge mortgage, home equity loan or homeowner loan. By securing equity you do put your home at risk if you do not keep up repayments, but it could also allow you to borrow a larger loan amount at a competitive interest rate.

Always think carefully before attaching any debt to your home and you might want to speak with experts for personalised guidance.

3. Savings

You can avoid getting into any debt by gradually saving from your employment income to pay for renovations and repairs. Of course, this will mean being patient but it will also mean avoiding any interest payment and possible debts that can materialise into arrears and stress.