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Empty Home Loans Fund launched

Empty Home Loans Fund launched

Category: Loans

Updated: 07/08/2017
First Published: 05/09/2013

This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

A new Government scheme has been launched to help homeowners borrow the necessary funds to get empty properties back into use.

The National Empty Home Loans Fund offers secured loans up to £15,000 to eligible homeowners.

Borrowers will be charged a fixed interest rate of 5% and have up to five years to repay the loan.

The intention is that, once renovated, the property should be let, rather than sold. If an owner sells the property during the five-year loan period, they must repay the loan and will incur an early repayment charge.

How does this loan compare?

Homeowners looking to renovate a property could also consider an unsecured personal loan.

See Moneyfacts.co.uk's guide on the difference between secured and unsecured loans.

Falling unsecured loan rates mean borrowers can now choose from some cracking personal loan deals.

Take, for example, Sainsbury's Bank's Standard Online Nectar Cardholder Loan. This deal offers a rate of 4.9% APR on loan amounts up to £15,000 – 0.10% lower than the Empty Home Loan's rate.

Clydesdale Bank, Derbyshire Building Society and M&S Bank, meanwhile, offer chart-topping deals that match the 5% APR rate of the Empty Home Loans Fund.

There are also market-leading loans for borrowers who think they'll need more than £15,000.

One again, Sainsbury's Bank is offering a chart-topping 6.9% APR for a £25,000 loan.

Borrowers could also consider a secured homeowner loan, where rates start at 5.7%.

What next?

Compare your loan repayments with our easy to use Loan Calculator

Borrow between £5k and £550k with our Secured Loans comparison

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.