An equity loan is repaid when the property is sold. Applicants do not make any ongoing payments. The amount repaid is related to how much was borrowed and the value of the property when it is sold.
Who can access HEEPS Equity Loans?
This is a pilot scheme open to householders in the following local authorities only: Glasgow City, Argyll and Bute and Perth and Kinross.
How much can householders get?
The amount of funding available will depend on the mortgage remaining on the property. The maximum loan is £40,000 and the homeowner must retain a minimum of 30% equity in the property. Loans that are claimed for and paid are subject to an administrative fee.
What work will this equity loan help with?
The work must include an energy efficiency element but funding for external repairs is also available. Specifically: At least 45% of the funding must be for energy efficiency improvements. Works which reduce heat loss can also be included in this 45%. So external repair work which reduces damp and draughts (such as fixing a leaking roof, repairing damp walls or repairing draughty windows) would qualify. 55% or less of the works cost can be used to fund external repairs generally (specific list of eligible repairs to be confirmed, but cosmetic improvements covering bathrooms, kitchens etc. will not be eligible).
How do householders apply for this?
Applications will not open until winter 2016 (exact date TBC) but householders should call Home Energy Scotland on 0808 808 2282 and an advisor will take their details as an expression of interest.
How do I find out more?
Further details on the scheme can be found here, but it’s important to note that many details are still being decided and therefore terms and conditions are subject to change.
Does this replace the HEEPS loan?
It is expected that this scheme will run simultaneously with other Scottish Government funded loan programmes such as the HEEPS loan.