Nationwide has raised its interest-free green loan ceiling to £20,000, encouraging more homeowners to enhance their home’s energy efficiency.
- These 0% Green Additional Borrowing products range from £5,000 to £20,000 with up to 90% loan-to-value available over 2 or 5 years.
- The prior limit of £15,000, set in June 2023, witnessed modest uptake, with only 1,900 applications by September’s end.
- Homeowners can now apply immediately without a six-month waiting period, aiming to boost participation.
- A recent Nationwide report underlines the importance of affordable financing to aid in achieving the UK’s 2050 net-zero targets.
In an effort to propel energy efficiency measures among UK homeowners, Nationwide has increased the maximum amount available for its interest-free green loans to £20,000. This strategic move is designed to make it easier for mortgage customers to finance energy-efficient home upgrades. The loans, available from £5,000 up to the new ceiling, come with a maximum loan-to-value of 90% across terms of 2 or 5 years. The change builds upon a previous loan limit set at £15,000, which saw only 1,900 successful applications by the end of September 2023.
Recognising the need for greater uptake, Nationwide has eliminated the six-month waiting period for new customers wishing to apply for these loans. By removing this barrier, Nationwide aims to encourage a broader segment of homeowners to participate in the scheme and address energy inefficiency without delay.
This initiative coincides with Nationwide’s recently published report titled “How low-cost finance supports the greening of UK homes,” which elaborates on the necessary steps for promoting home decarbonisation. The report finds homes currently represent around 15% of the UK’s total greenhouse gas emissions, highlighting the urgent need for retrofitting to meet the UK’s 2050 net-zero commitments.
The report’s findings reflect consumer sentiment that the government should significantly contribute to funding energy efficiency projects. However, it notes various obstacles to retrofitting besides finance. It reveals that the majority of loans are sourced directly from Nationwide’s existing customer base, rather than through intermediaries.
Nationwide has urged the government to take stronger action in promoting energy-efficient home improvements. It recommends initiatives such as increased public awareness campaigns, the establishment of a National Retrofit Hub for consumers, and enhanced cooperation between financial institutions and the government. Graham Lloyd, Nationwide’s head of strategy and sustainability, emphasised the collective responsibility of both government and businesses to meet environmental goals. The sentiment is encapsulated in his statement that meeting the UK’s 2050 net-zero target relies heavily on incentivising homeowners to invest in energy efficiency.
Nationwide’s enhanced green loan offering illustrates a determined push towards sustainable home improvements in the UK.
