Access to loans is only available by referral through strategic housing authority partners
AHL can offer a range of loan products that will help homeowners repair, improve and adapt their properties or relocate, taking into account their personal circumstances. One of the strengths of AHL is its flexibility to develop tailored products and policies to meet the specific needs of a particular LA market or strategy. The current loan portfolio compromises the following:
Repayment Loan
This is a standard repayment loan with a variable term and interest rate to suit LA requirements. It is designed for low income homeowners who are able to make monthly repayments but unable to access traditional bank and building society loans.
Interest Only Loan
This loan has been designed for those who can not meet the level of repayment required on the standard repayment loan. The level of monthly repayment is lowered as only the interest is repaid. In some circumstances the interest cost may be met by the benefits agency. The term and interest rate of the loan can be set to meet LA requirements.
PAL® - Property Appreciation Loan
This unique product was developed following research carried out with the Birmingham University Centre for Urban and Regional Studies. It is designed to meet the needs of owners who do not have the income to support a loan but do have considerable equity in their properties. The loan is secured as a percentage against the value of the property. There are no repayments and no interest is charged. The loan is only repayable when there is change of ownership and the amount repaid is the same percentage of the current property value.
For example,If a loan of £10,000 was required for essential repairs on a house valued at £100,000. This would be secured as 10% of the property value. If the property was sold in 10 years time and was valued at 150,000. The amount repayable would be 10% of £150,000= £15,000.
Discounted PAL®
This is a variation on the standard PAL® developed to encourage the take up of home improvement loans within a certain regeneration area. This product uses the same principle as the basic PAL® but has a discount built in. This has proved to be an effective incentive for people to utilise the scheme without the direct use of grant.