| Low-cost loans help keep people at home |
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Cash loans for home improvements are to be given to the elderly by Liverpool City Council.
"Houseproud" is a new not-for-profit scheme which aims to help homeowners aged 60-plus and households with a disabled person of any age, to repair or improve their property by releasing some of the equity in their homes. Three different types of loans are on offer: · A Capital Release Loan only needs to be repaid when a home is sold. The bank takes the original amount of the loan plus the interest that will be owed. · An Interest Only Loan allows homeowners to pay the interest off a loan on a monthly basis and then just pay exactly the sum borrowed when the house is sold. · A Capital and Interest Repayment Loan works like a mortgage so repayments cover both the interest and part of the original amount. There is also an option to pay off all the loans early. Liverpool's executive member for housing, Councillor Flo Clucas, said: "This is a great scheme. It allows people to release some of their equity in their property and use it to improve their homes. "It could mean the repairs you have been wanting to get done for ages finally happening, whether it's a new roof, fixing the drains, putting in a stairlift or getting a downstairs loo. "The scheme has been trialled in the North West and it was found that it helped people continue living in their own homes longer instead of having to move into care." The city council will help homeowners source tradesmen and supervise the building work. The Home Improvement Trust will run the Houseproud scheme with Liverpool City Council. The trust has special deals with banks and building societies to provide the low-cost loan. The scheme will launch next year.
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