How do you get grants for home loans?

Home loans are often taken as a means of carrying out renovation work within the home either to make it more suitable for a growing family or possibly to increase its market value. For those people with impaired living ability such as the elderly and the disabled it may be difficult to access a home loan for such a purpose as they will be unable to meet the repayments. They could in these instances access the equity within their own home through an equity release scheme. However such schemes have a host of negative repercussions and therefore all other avenues should be fully explored before resorting to equity release.

One way in which it may be possible to access financial assistance to carry out renovation work is through grant schemes at a local council level. Currently much of council funding has been cut however it is still possible that with a bit of research you may find that you could be eligible for some assistance.

Grants can be made available to those who need to carry out renovation work such as the installation of a downstairs bathroom with disabled access or even a ramp to allow for outdoor access. From a council perspective it costs them less money to keep people living within their own home and therefore they are often willing to assist with any steps that can help somebody manage to stay in their own home. Council initiatives can also include low-cost loans to eligible candidates for home improvement repairs which enable people to stay within their own home. Often these grants and low-cost loans will be dependent on other benefits and incomes that you are receiving. A good starting point is to contact either your local citizen’s advice bureau or local council who will be able to provide you with information grants in your area.

Another group that may be eligible for grants towards home loans are first time buyers. The government appreciates that getting a foothold in the property market can be difficult and therefore initiates schemes which can be helpful for first time buyers. These schemes can involve those whereby the government essentially co-owns a property with you, the buyer. They will assist with upwards of 30% of the value of the home and the remaining 70% can be accessed through mortgages and savings. At all times the buyer retains the legal title to the home however at the point of sale the government or partner building agency will then be reimbursed for the percentage of equity they purchased within the home. For example if they paid 25% of the property’s price they will be entitled to 25% of its sale value whether this has increased, stayed static or even decreased.

First time buyers schemes can be a really helpful way to get on the property ladder without exposing yourself to the high interest rates associated with a 100% mortgage.

A final category of grants which may be available are those for improvements relating to energy efficiency schemes such as solar power. As supplies of fossil fuels continue to be depleted and the threat from global warming continues to alarm government bodies a number of grants are being made available for those householders who wish to install more energy efficient systems. Whilst these grants will not cover all of the costs they can be of assistance to make up a shortfall on a home loan. It is also important to understand that energy systems such as solar paneling can reduce your monthly energy bills and may also generate excess energy which can then be sold back to the national grid allowing you to make money which will help to pay back your outstanding home loan.

When exploring your options regarding home loans and mortgages it is always a good idea to pop into your local council office to enquire about any available grants within your area.