The Council gives these loans to owner-occupiers to help eliminate category one hazards identified using the Housing Health and Safety Rating System and any other essential major repairs, considered on an individual basis. Owner-occupiers, who receive one or more of the following benefits may apply for a Safer Home Loan:

Income related benefits

• Housing Benefit
• Council Tax Benefit
• Income Support
• Working Tax Credit with an annual household income of less than £15,460
• Child Tax Credit with an annual household income of less than £15,460
• Guarantee Pension Credit
• Savings Pension Credit

Benefits that are not income related

• Attendance Allowance
• Disability Living Allowance
• Industrial Injuries Disablement Benefit
• War Disablement Pension

The Council will give an equity release loan provided there is sufficient equity in the home. In all cases, the applicant will retain the majority of the equity.

The whole cost of carrying out the work and arranging the loan
will be considered for aid. When the applicant receives an income related benefit, the Council will give a loan to cover the full cost up to a maximum of £30,000, including fees. When the applicant receives a benefit that is not income related, the Council will carry out a financial assessment to determine the amount of loan to be approved, up to a maximum of £30,000.

If it is clear that the applicant cannot cope with all of the proposed work to eliminate category one hazards, a loan may be given for a lesser scheme of work, including fees, at the Council’s discretion.

The equity release loan will be interest free. The Council’s financial interest will be registered at the Land Registry as a legal charge against the property. A specimen legal charge is attached to this policy document. It shows all the circumstances when the Council will require repayment of the loan, including:-

• within 3 months of the sale or transfer of the property; or
• within 6 months of the date of death of the borrowers: whichever is the earliest.

The home owner may also repay the loan at any earlier time, without penalty, if he or she wishes. The Council will also require repayment if the applicant has obtained the loan by acting dishonestly when making the aplication, for example by making false statements. Such cases will be reported to the police. The legal charge will contain a provision for charging interest if the loan is not repaid when payment is due. If house prices fall and the amount of available equity is less than the amount of the loan at the time the house changes hands, the Council may waive the right to claim back all or part of the loan.