Council gives £280,000 for low-interest local home improvement loans

A FURTHER £70,000 has been pledged by West Somerset Council to a partnership offering low interest home loans for local people, making a total investment of £280,000 this year.
The loans are available via council partners Wessex Home Improvement Loans to local homeowners on low incomes who need to make essential repairs or improvements to their homes, but who cannot afford to borrow at high street interest rates.
Council environmental health manager Ian Timms said: “Specialist advisers help borrowers select the scheme that is most suited to their circumstances.
“They look at people’s income and expenditure and discuss how much they can comfortably afford to borrow.
“As well as support from a specialist adviser from Wessex Home Improvement Loans, an officer from West Somerset Council will inspect the finished work to confirm the work has been completed to an acceptable standard.”
There are three possible loan products - a capital repayment scheme, an interest-only scheme, and an interest roll-up scheme.
The maximum loan available is £15,000 and the loans are offered at a fixed rate of three per cent.
People borrowing £5,000 on an interest-only basis would have a monthly repayment of only £12.50.
Melanie Allen, an adviser with the council’s partner said: “It has been a real privilege working with West Somerset Council and the clients here, especially when you see the difference the loan scheme makes to people.
“We offer support and guidance throughout the process to ensure people get the right products.
“We value our partnership with West Somerset Council, which subsidises the scheme, so that we can offer local people such low interest rates.
“There is nothing like it on the high street and we are proud to be able to offer such a unique scheme which is entirely focussed on the needs of the client.”
West Somerset residents interested in the low cost loan scheme should contact Julie Payne on 01643 703704.

• Our photograph shows the £280,000 cheque being presented by West Somerset Council Environmental Health Manager Ian Timms to Somerset Coast Home Improvement Partnership home improvement officer Judy Ernest (left) and Wessex Home Improvement Loans adviser Melanie Allen. Photo submitted.

Residents benefiting from council's low cost loans scheme

LOW cost loans are on offer to West Somerset homeowners who are on a low income, thanks to a scheme run by the district council and Wessex Home Improvement Loans.
Homeowners who qualify can borrow up to £15,000 for essential repairs or home improvements at a fixed repayment rate of three per cent.
One resident who has taken advantage of the scheme is Stephanie Witherick, of Wootton Courtenay, who borrowed £5,000 to fit a downstairs shower room.
Mrs Witherick said: “I was really struggling to use the bath upstairs. It was getting beyond me and to the point where it was quite terrifying.
“High street lenders were not interested and I was also worried about rises in interest rates.
“West Somerset Council’s home improvement adviser said I was eligible for a loan, and Wessex Home Improvement Loans sorted out the financial side for me.
“It is an excellent service because the council monitored the contractor’s work every step of the way and made sure everything was done properly.”
Eligible work includes leaking roofs, rotten or draughty windows, central heating installation, and damp treatment.
However, the low cost loans are not available for non-essential improvements.
There is no charge for setting up the loan, although some homeowners may incur a small charge for taking security on their property and legal expenses.
Mrs Witherick said: “It has taken the worry out of having contractors in, and it is good that the interest rate will never go up.
“I was delighted that the shower was fitted in time for my daughter’s wedding and it has really improved our lives.”
The council’s housing, health, and welfare portfolio holder, Councillor Mary Crowley, said: “This is a fantastic scheme for people who cannot afford to get the work done or cannot afford high street borrowing rates.
“Borrowers can rest assured that there are no hidden charges and that the rate will remain fixed for the duration of the whole loan.
“We would encourage more people on low incomes to come forward to see if they are eligible.”
Three loan funds are available for borrowers, including a capital repayment scheme, an interest-only scheme, and an interest roll-up scheme.
Specialist advisers will help borrowers select the scheme that is most suited to their circumstances.
Wessex Home Improvement Loans adviser Melanie Allen said: “It has been a real privilege working with West Somerset Council and the clients here, especially when you see the difference the loan scheme makes to people like Mrs Witherick.
“We offer support and guidance throughout the process to ensure people get the right products.
“We value our partnership with West Somerset Council, which subsidises the scheme so that we can offer local people such low interest rates.
“There’s nothing like it on the high street and we are proud to be able to offer such a unique scheme which is entirely focussed on the needs of the client.”
West Somerset residents interested in the low cost loan scheme should contact Julie Payne on 01643 703704.

• Our photograph shows Stephanie Witherick (left) in her new bathroom with loans adviser Melanie Allen. Photo submitted.