Liverpool city council is helping some of city's most vulnerable people beat the credit crunch.

The city's executive board is to vote to provide funds for a series of loans to help homeowners on low incomes improve their property.

A wide-range of equity loans for renewal schemes have been put in place to help homeowners in Liverpool to pay for repairs or home improvements by releasing some of the equity locked in their homes.

The 'Houseproud' scheme aims to help homeowners aged 60 plus, or homeowners with a disabled person of any age, repair, improve or adapt their home so they can enjoy living there safely and independently. It is a not-for-profit initiative run by the Home Improvement Trust (HIT) which all carry a "no repossession" guarantee.


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.

Councillor Marilyn Fielding, Liverpool's executive member for safer, stronger, communities, said: "After trialling this initiative we found it can help create more sustainable communities by keeping a larger proportion of homeowners in all our neighbourhoods.

"It will mean people making those essential repairs that have needed doing for some time; whether it's a new roof, fixing the drains, putting in a stairlift or getting a downstairs loo.

"Under the current economic climate many people are finding traditional lenders very reluctant to loan money. This council-backed scheme is ideal for some people and can help them to continue living in their own homes longer instead of having to consider a move into care. Allowing people to release some of their equity in their property to improve their homes can be of enormous benefit."

The city council will also help homeowners source reliable tradesmen and supervise the building work.

(CD/JM)