Merton Council has reduced the interest rate on its ‘Home Energy Efficiency Loan’ scheme from 5.5% to 4%, representative 4.2% annual percentage rate (APR), aiming to make it cheaper for homeowners to carry out energy-saving improvements.
The scheme is open to homeowners and landlords, offering loans up to £20,000, repayable over 10 years with no early repayment charges (ERCs).
Residents can use the finance to fund measures like solar panels, battery storage, heat pumps, insulation and new doors or windows.
The council said it wants to help people cut energy bills and lower carbon emissions and the change is part of its aim to reach net zero by 2050.
Councillor Eleanor Stringer, deputy leader and cabinet member for civic pride and climate change, said: “Lowering the interest rate of our Home Energy Efficiency Loan Scheme demonstrates our commitment to making home improvements more affordable.
“By providing affordable finance, we’re helping residents cut their energy bills, reduce carbon emissions, and contribute to a greener Merton.”
The scheme is delivered in partnership with Lendology CIC, a social enterprise lender that works with councils across the UK.
According to Merton Council it is the only London borough with a dedicated energy efficiency loan scheme for homeowners.
Emma Lower, CEO at Lendology CIC, said: “We are delighted to continue working with Merton Council to provide responsible finance for home energy improvements.
“Making energy efficiency upgrades more accessible is essential in reducing emissions from privately owned homes, which account for over 20% of the UK’s carbon footprint.”
