Ecology Building Society has launched a cashback boost for lending that supports the installation of heat pumps.
The new cashback option is available for mortgage applications on properties that include a heat pump in a drive to encourage and accelerate the switch to low carbon heating technologies.
Decarbonising domestic heating is a critical step to improve the energy efficiency of the UK’s homes to meet the UK’s net-zero ambitions.
The decision to introduce the cashback option for heat pumps comes at a time when the Government is recognising the urgent need to reduce the carbon impact of house building and has stated that new homes must reduce carbon emissions by 75% by 2025.
Daniel Capstick, Ecology’s mortgage manager, said: “Decarbonising how we heat our homes is key to meeting our net-zero ambitions.
“Now, more than ever, it’s important that lenders play an active role in incentivising green building and helping to reduce energy bills.”
The cashback option is available on the Society’s new residential mortgages for self- and custom-build, renovations, conversions, and shared ownership as well as for further advances.
Ecology borrowers can claim £500 cashback when they install an Air Source Heat Pump (ASHP), and the incentive is £1000 when a Ground Source Heat Pump (GSHP) is installed.
The installer must be MCS Certified, giving confidence that the pump and installer are accredited to meet appropriate quality standards, and the cashback is payable on receipt of the certificate of installation.
In addition, there is a zero rate of VAT for clean heating measures, helping to make heat pumps even more affordable for people looking to replace a gas or other fossil fuel boiler.
Capstick added: “We’ve been leading the way on sustainable mortgages for over 40 years and the cashback option makes it more affordable to install heat pumps, incentivising our borrowers to build or renovate to higher energy efficiency standards, which is critical in the fight against climate change.
“It also helps raise awareness of the role of heat pumps as we transition towards a sustainable future.”
