Nationwide has expanded its interest-free lending for energy-efficient home improvements, doubling the number of mortgage customers who can access its 0% Green Additional Borrowing.
The building society will now support up to 10,000 households with the scheme, allowing eligible borrowers to borrow between £5,000 and £20,000 to fund retrofit projects such as insulation, solar panels and new windows.
The move builds on the product’s launch in June 2023, when Nationwide committed to helping 5,000 households improve the energy efficiency of their homes. Since then, around £60m has been lent through the scheme, with an average loan size of roughly £13,000.
Nationwide mortgage customers can access the additional borrowing up to 90% loan-to-value over a two- or five-year term once their first mortgage payment has been made.
GREENHOUSE GAS EMISSIONS
Regional data shows the South West has seen the highest uptake so far, accounting for 16% of completions, followed by the Outer Metropolitan and Outer South East regions, both at 12%.
The expansion comes as housing continues to be one of the UK’s largest sources of greenhouse gas emissions. Residential buildings account for around one fifth of emissions in England, and research by Nationwide and WPI Economics suggests improving all homes to EPC band C or higher could cut emissions from residential housing by up to 47%.
Alongside the lending expansion, Nationwide has also joined the government’s Green Home Finance Strategic Partnership, an initiative involving lenders, the energy sector and consumer groups aimed at scaling up green home finance as part of the Warm Homes Plan.
IMPROVING ENERGY EFFICIENCY
Henry Jordan (main picture, inset), Nationwide’s Group Director of Mortgages, says: “We are committed to helping our members improve the energy efficiency of their homes. Extending our 0% Green Additional Borrowing products will help another five thousand households who want to retrofit their home and can afford long-term investment but struggle to meet the upfront costs.
“However, more is needed and collaboration is crucial if we are to decarbonise the UK’s housing stock. We are, therefore, delighted to be part of the Green Home Finance Strategic partnership, which will play a leading role in helping to unlock the changes needed to make our homes resilient for the future.”
IMPROVING HOUSING STOCK
Mary-Lou Press, President of NAEA Propertymark, adds: “Initiatives like this that support retrofitting not only help homeowners reduce their energy bills and carbon emissions, but also play a crucial role in improving the overall sustainability of the UK’s ageing housing stock.
“However, while this pilot is a positive step, broader and more accessible green financing solutions are needed across the market so that more property owners can benefit.
“To truly unlock retrofit opportunities at scale, Governments across the UK, lenders, and the property industry must work together to ensure that support, supply-chain capacity and consumer awareness keep pace with net-zero ambitions.”
