Home Investment Loans

Interest free loans of up to £30,000 for applicants whose property is in serious disrepair. The loans are means tested and designed for people on low incomes or certain benefits.

What is it for?

The purpose of the home investment loan (HIL) is to help homeowners remove category 1 and 2 hazards from their dwelling as identified under Part 1 of the Housing Act 2004 or to put a dwelling into reasonable repair or to meet the Decent Homes Standard. This includes the common parts of the dwelling that the applicant is responsible for under the terms of any lease. Examples of work covered under this scheme include:

Replacement of roof
Rewiring of property
Damp issues
Structural collapse
Replacement of windows
Provide an adequate kitchen (where existing one is over 20 years old)
Provide an adequate bathroom (where existing one is over 30 years old)

All works will be assessed by a surveyor to check that they would fall under the criteria of loan works.

Who can apply?

To be eligible to apply for a home investment loan you must meet all of the following criteria:

Applicant(s) must be over 18 and owner-occupier.
Applicant(s) must have owned and resided in property for at least 3 years, exceptions -
- Where applicant(s) has a disability.
- Where property was vacant for 6 months prior to purchase.
- Where applicant(s) is first-time buyer (council will be sympathetic towards applicants, who as a result of a divorce are buying a property on their own for the first time).
- Where applicant(s) inherited the property and the deceased person lived there for at least one year prior to their death.
- Where the property has been left to the applicant(s) as part of a divorce settlement.
Only properties that are within council bands A-F will be considered.
Only properties built more than 10 years ago will be considered.
Applicant(s) must not be in arrears on council tax payments, or have any other outstanding debts to the council.
Applicant(s) must not have more than £15,000 in savings
Applicant(s) must not own a second property.

The means test

Home investment loans are means tested to ensure that those in the most need get the most help. Means testing considers the income and capital of the applicant and his or her spouse or partner and takes into account:

a person's average weekly or monthly income, including pensions and certain benefit payments
any savings above a set amount.

When you apply for a loan you will be asked to complete a financial assessment form. The level of loan you may receive will be based on the information you provide.

If you receive one of the following benefits you will be automatically passed through the means test and will be eligible for loan assistance providing the work required falls under the scope of the loan:

Housing benefit
Income related E.S.A. or Income related J.S.A.
Income Support
Guaranteed pension credit
Working tax credit and earning less than £15,050 p/a
Child tax credit and earning less than £15,050 p/a
Universal credit

Means testing takes into account your income. This includes any earnings from employment or self-employment, pensions and annuities. If you have a partner, any assessment will be based on your joint income. Capital is also included in the means test. This will include any savings or investments you (and your partner) may have such as savings accounts, premium bonds, stocks and shares, etc. The first £6,000 of savings is disregarded from the means test.

Please note - actual outgoings are not taken into consideration.

There are three possible outcomes depending on your financial assessment:

1. You will be awarded 100% loan
2. You may have a contribution towards the loan
3. You will not be eligible for any loan assistance if your contribution is calculated as being more than the cost of the proposed work.