Government Home Improvement Loans – Are They Legitimate?
Representative example: If you borrow £34,000 over 15 years at a rate of 8.26% variable, you will pay 180 instalments of £370.70 per month and a total amount payable of £66,726.00. This includes the net loan, interest of £28,531.00, a broker fee of £3,400 and a lender fee of £795. The overall cost for comparison is 10.8% APRC variable. Typical 10.8% APRC variable
Representative example: If you borrow £34,000 over 15 years at a rate of 8.26% variable, you will pay 180 instalments of £370.70 per month and a total amount payable of £66,726.00. This includes the net loan, interest of £28,531.00, a broker fee of £3,400 and a lender fee of £795. The overall cost for comparison is 10.8% APRC variable. Typical 10.8% APRC variable
Are you thinking about making your home better with a loan but feel unsure about the costs and process?
You’re not alone. Every month, nearly 7,000 people visit our site for advice about loans for home improvements.
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
Home improvement loans from the government are a real thing. They are usually interest-free and offered by local authorities. But the type of loan you can get depends on your situation and your home improvement plans.
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:
- Home improvement loans
- Borrowing against home equity
- Saving up from your regular income
- 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?
Your local authority may also offer grants to help with home improvements – not just loans. This means you could get funds to make changes to your property and not have to pay any of the money back.
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!
Home improvement loans for all purposes
- Stuck paying high interest on credit card debts & loans?
- Looking to fund a home improvement project?
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Government home improvement loans
Government home improvement loans are sometimes available through local authorities rather than the UK Government directly. These loans typically come with 0% interest to help families, individuals and landlords improve aspects of their property, especially to make them safer and more efficient.
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.
There is one current exception to this called the Green Deal, a loan available directly from the government to pay for home improvements that will make your property more energy-efficient.
How can I get a free government 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 is a government home improvement loan available to people who want to make property changes that will substantially improve the energy efficiency of their home.
Examples of home energy improvements include new insulation, double glazing and even solar or wind power installation.
As this is a loan you will need to pay the money back.
Who is eligible for a green home grant?
Anyone who owns a property that could benefit from energy efficiency improvements can apply to use one of these loans. If approved you can only use a company to make changes that have been given the Green Deal accreditation.
This loan scheme is available in England, Wales and Scotland but it is not available in Northern Ireland.
» TAKE ACTION NOW: Compare deals from the UK’s leading lenders
Other ways to fund home improvements
There are other ways to fund a home improvement project. One of the loan options below can be joined with a government scheme that will help you pay the interest.
Read on and stick to the end of this guide to find out more.
- Home improvement loan
A home improvement loan is an unsecured or secured loan used to help homeowners make changes to their property. The loan amount can be used as they wish without restrictions in most cases. It is repaid through monthly repayments with interest.
- 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.
- 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.
