Nationwide is now offering mortgage customers interest-free green loans up to £20,000 to improve their homes’ energy efficiency.
The 0% Green Additional Borrowing products will allow borrowing from £5,000 to £20,000, with a maximum loan-to-value (LTV) of 90% across 2- or 5-year terms.
This follows a previous limit of £15,000 set in June 2023, which saw low take-up, with only 1,900 applications completed by the end of September 2023.
Nationwide has also removed the six-month waiting period for new customers to apply for the loans.
The aim is to encourage more homeowners to take advantage of the offer.
This initiative coincides with the launch of Nationwide’s report titled “How low-cost finance supports the greening of UK homes,” which outlines necessary actions for promoting home decarbonisation.
Homes contribute approximately 15% of national greenhouse gas emissions, making retrofitting critical for achieving the country’s 2050 net-zero target.
The report presented eight research findings indicating that customers believe the Government should primarily fund energy efficiency.
It also highlighted various barriers to retrofitting, noting that finance is only one component.
The findings revealed that most loans come directly from Nationwide customers rather than through brokers.
Nationwide has called on the government to take stronger measures to encourage home improvements, recommending public awareness campaigns, a National Retrofit Hub to assist consumers, and more collaboration between lenders and the government.
Graham Lloyd, Nationwide’s head of strategy and sustainability, said: “We believe the UK’s 2050 net-zero target can only be met through incentivising people to invest in their homes.
“As a mutual, we have chosen to make a difference, which is why we’re making it as easy and attractive as possible for our mortgage customers to retrofit their properties.
“But much more needs to be done and we need both the government and businesses to step in and step up to create meaningful progress.
“This cannot continue to be kicked down the road, as it has been for some years now.”
