If you are aged over 60 or disabled and need repairs, improvements or adaptations carried out to your home then you may be able to benefit from the Houseproud scheme.
North Lincolnshire Council has entered an agreement with the Home Improvement Trust (HIT), a not for profit organisation. The agreement will help elderly and disabled homeowners in North Lincolnshire renovate or improve their homes. Houseproud is run by a group of not-for-profit organisations headed by the council. Its sole aim is to help home owners aged 60 and over and households with a disabled person of any age to repair, improve or adapt their homes so they can continue to enjoy living there safely and independently.
The principle is for the HIT to arrange a low cost advance to homeowners aged 60 or over or disabled homeowners of any age. The loan is secured against the value of their property with a guarantee that no repayment will be required until the property is sold.
Houseproud offers a safe, easy way to get essential jobs done professionally with the minimum of fuss. A variety of loans are available through Houseproud. Not only are they affordable and tailored to the needs of older people and disabled people, but also they carry a guarantee of no repossession - no matter what happens.
How does Houseproud work?
From start to finish Houseproud offers a comprehensive home improvement service. You will be allocated your own Houseproud advisor who will discuss what improvements, repairs or adaptations are required. They will also check if you are eligible for help under this or any other scheme.
The council will arrange for the advisor to visit your home to assess what may need doing and how much it is likely to cost. Once it is agreed how you will pay for the work the council will arrange a good quality builder and the work can begin. The council will also arrange for the completed work to be inspected to ensure that it has been satisfactorily carried out.
How can I pay for the work?
Houseproud provides access to loans that are both affordable and risk-free. They are specially designed to meet the needs of older and disabled people.
With Houseproud, a part of the value of your home can be turned into a loan to meet the cost of the work. Any individual circumstances are taken into account when deciding which type of loan is best for you. In some cases it isn't even necessary to pay it back during your own lifetime. Instead, the amount you borrow, plus interest, is taken from the value of your house when it is eventually sold.
Once you know how much you need to borrow, we will make all the arrangements for you to get a loan.
What if I don't want a loan?
No problem. If you prefer to finance the work out of your own savings or can raise the money elsewhere, you can still use the Houseproud service without the option of a loan.
What sort of loans are available?
There are three main loan options:
1. Capital release loan - No repayments are necessary with this type of loan until the house is no longer your main home and is sold. When the property is sold, for example after your death, the bank or building society take the original amount of the loan plus any interest that has accumulated from the proceeds of the sale. You can start making repayments earlier if you wish. First the interest, then the loan. There is no penalty for early repayment except in the first year when there may be a charge of up to two months interest. This loan is usually only available to single people and couples who are 75 or over. Couples must make a joint application.
You must check that this mortgage will meet your needs if you want to move or sell your home or want your family to inherit it. If you are in doubt, seek independent advice.
2. Interest only loan - With this loan only the interest is paid each month until the property is sold. The actual amount borrowed (the capital) does not reduce and is repaid when your house is no longer your main home and is sold. You can start to pay off the capital whenever you like. You will have to pay interest on the amount you still owe until you have repaid the loan and there may be a charge of up to two months interest for loans paid off in the first year. This option is available to single people or couples who are 60 or over or households with a disabled person of any age.
3. Capital and interest repayment loan - This is a straightforward mortgage. Your monthly repayments cover both the interest and part of the original amount you have borrowed (the capital). You agree the length of time over which you borrow the money with the lender. The shorter the period, the higher your monthly repayments will be, but, of course, the sooner it will be repaid in full. This type of loan is available to single people or couples aged over 60 or households with a disabled person of any age.
What is the rate of interest chargeable on the advance?
The mortgage interest rate will vary over time. The formal offer will confirm the actual rate applicable when you take out the advance. You will be notified when the interest rate varies.
How do I decide which loan will be best for me?
Because we want you to make the right choice, Houseproud offers the services of an Independent Financial Adviser free of charge. Their written report will recommend which financial option is best for you.
We would also urge you to discuss the options available with members of your family and, if necessary, your own legal adviser.
I've heard worrying reports about other schemes. How can I be sure about this one?
The council and its partners back Houseproud. The sole aim is to enable you to continue living safely and independently in your own home.
Do I risk losing my home?
No. Your home is never at risk with Houseproud. All loans have an absolute guarantee that your home will not be repossessed while you are living in it.
What size of loan can I have?
Your income and the value of your home are taken into consideration when deciding how much you can borrow. Usually this ranges from £3,000 up to 30 per cent of the current value of your property.
We just need to make sure, for your own benefit, that if you chose a repayment loan you can make the repayments without overstretching yourself.
Will I need insurance?
Yes. If you take out a loan, your home must be covered by building insurance.
With a Capital Release Loan, if your insurance is with a company other than your lender, you may have to pay the bank or building society a £10 administration fee as part of the contract. For other loans, if the bank or building society does not arrange the insurance, they may make a one-off charge of £25.
Are there any medical checks?
No evidence of your health is normally required; however, for those aged under 60, we will need confirmation that the household includes a disabled person.
I'm entitled to a Disabled Facilities Grant - can I still get a Houseproud loan?
Yes. If you're entitled to a Disabled Facilities Grant, Houseproud can often help you to meet any financial contribution you may be expected to make towards the cost of the work and/or to pay for extra work not covered by a grant.
What about age limits?
If you take out a capital and interest repayment loan or an interest only loan, you must be aged 60 or over or have a disabled person in the household. For older homeowners, usually those aged 75 or over, the capital release loan is available.
Are there any additional costs?
There are costs to cover valuation, legal and administration fees. Houseproud has specially negotiated fees to make them affordable. You will be informed of these fees before you decide to go ahead with the loan. You will not be liable for any fees unless you decide to go ahead - and they can be included in the loan so you do not have to use any savings. However, financial help may be available towards meeting the costs. Your Houseproud adviser will be able to give you more information about this.
What kind of work can be done under Houseproud?
Here are some examples:
- A new bathroom
- Electrical rewiring
- Central heating
- A new roof
- Replacement windows and doors
- New guttering
- Plumbing
- A refitted kitchen
- Better home security
- Adaptations to help of you have a disabled person in the home
- Improving your home's energy efficiency
What can Houseproud offer?
- Personal help and support from your own Houseproud adviser.
- Expert guidance from an Independent Financial Adviser.
- The services of technical staff, including visits to your property and a costed schedule of work.
- Good reliable builders.
- Proper inspection of the building work. Builders are only paid when the work is done to a satisfactory standard.
Want to know more?
Just call the free phone help line on 0800 783 7569 to receive a free Houseproud information pack and video. Alternatively contact North Lincolnshire Council's environmental health - housing team on (01724) 297621.
Important information
No applicant will receive less favourable consideration on the grounds of race, colour, ethnic or national origin, sex, marital status, sexual orientation, age or disability in any matters to do with Houseproud.
If you need information in a different language, large print, Braille or on an audio cassette, then please call the free phone help line on 0800 783 7569.
This information must be read in conjunction with advice from an Independent Financial Adviser with regard to interest rates. A written quotation is available on request.
Your home is at risk if you do not keep up repayments on a mortgage or other loans secured on it.