Loans

 

Help to Build

If you are building a home or hiring someone to build one, you may be able to get a government-backed loan to cover part of the cost. This is called a Help to Build equity loan.

You can apply for the Help to Build equity loan to do any of the following:

• buy land and build a new home on it
• build an ‘airspace development’ flat (airspace developments are new properties built in unused space above an existing building)
• convert a commercial property into a residential property 
• build a ‘custom shell home’ (where a professional builds the structure, but you’re responsible for the design and layout inside)
• demolish an existing property and replace it with a new home

You cannot use the loan to build:

• more than one home
• upgrades to your home
• a second home - you must live in the new home and sell any other residential property you own within 12 months of the date the new home is built

You can only get an equity loan if you are also able to get a mortgage for the home you want to build.

You can apply for between 5% and 20% of the estimated land and building costs for your home.

Find out more about how to Apply for a Help to Build: Equity Loan at www.gov.uk.

 

What is a Credit Union?

A credit union is a financial cooperative owned and controlled by its members. They offer many of the same services as high street banks, but operate a different business model with members electing the directors.

Operating surplus generated from the credit union activities is either reinvested back into the business or distributed to members.

Credit unions share a common interest to provide ethical financial services to members.

Credit unions provide a range of services, including savings accounts, loans and information about debt and money management.

Visit citizensadvice.org.uk for more information about borrowing money and credit unions.

 

Notts and Lincs Credit Union

Notts and Lincs Credit Union provide savings accounts and affordable loans for people living or working in Nottinghamshire or Lincolnshire (excluding Humberside), including people with a poor credit history (subject to eligibility).

Visit nottsandlincscu.co.uk to find out more about the range of services provided and to check your eligibility.

 

Banks and Building Societies

High street lenders, such as banks and building societies are a common option for financing home improvement works.

Loans can either be ‘unsecured personal loans’ where you are looking to borrow a small amount of money over a shorter period of time, or ‘secured loans’, usually designed for people who want to borrow more than £25,000. However, ‘secured’ loans are usually secured against your property, meaning that your home could be repossessed if you do not keep up with your payments.

 

Citizens Advice

Citizens Advice provides information and advice about unsecured and secured Personal loans.

Visit www.citizensadvice.org.uk for more information about Borrowing money.

 

The Money Advice Service

The Money Advice Service website provides useful information about borrowing and managing your money.

Visit www.moneyhelper.org.uk for more information about borrowing money.

 

Money Saving Expert

The Money Saving Expert website provides information about Personal loans and Home improvement loans.

Visit www.moneysavingexpert.com for more information about borrowing money.

 

Payday Loans

Payday loans are an expensive way to borrow money. They are designed for smaller short-term amounts to use until you next get paid.

Payday loans can be easy to access but have very high interest rates.

It is always important to understand how much you will need to pay back and what will happen if you can’t, before entering into any agreement.

You should always check that the lender is FCA (Financial Conduct Authority) approved before you take out a loan.

 

Loan sharks

Money lenders who aren’t authorised by the FCA are breaking the law. They are known as loan sharks.

Loan sharks lending is illegal.

You can find more information about loan sharks and reporting them on the GOV.UK website at www.gov.uk or you can report a loan shark to at www.stoploansharks.co.uk.

Stop Loan Sharks investigates and prosecutes illegal money lenders and provides support for borrowers in the UK.

 

Citizens Advice

Citizens Advice provide information about borrowing money, how payday loans work, how to check if a lender is FCA approved and alternatives to payday loans.

Visit citizensadvice.org.uk for more information about borrowing money, payday loans and loan sharks.