Nationwide has expanded its interest-free lending for energy-efficient home improvements and 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 take out interest-free loans of between £5,000 and £20,000 to fund retrofit projects.
The move builds on the product’s launch in June 2023, when Nationwide committed to supporting 5,000 households. Since then, around £60m has been lent through the initiative, with an average loan size of approximately £13,000.
ADDITIONAL BORROWING
Solar panel installations, insulation upgrades and new windows have been among the most common improvements funded through the scheme. The South West has recorded the highest uptake, accounting for 16% of completions, followed by the Outer Metropolitan and Outer South East regions, both at 12%.
The additional borrowing is available up to a maximum of 90% loan-to-value and can be taken over a two or five-year term. Mortgage customers are able to apply for the funding once their first mortgage payment has been made.
Nationwide said the expansion reflects the growing role housing plays in the UK’s emissions profile, with residential buildings responsible for around one fifth of emissions in England.
Analysis by Nationwide and WPI Economics suggests upgrading all homes to EPC band C or above could reduce residential housing emissions by up to 47%.
WARM HOMES PLAN
Alongside the lending expansion, Nationwide has also joined the government’s new Green Home Finance Strategic Partnership, which brings together financial services firms, the energy sector and consumer groups to scale up green home finance as part of the Warm Homes Plan.
The lender has also distributed around £4.8m in cashback to customers through its Green Reward initiative.
COLLABORATION IS CRUCIAL
Henry Jordan (main picture, inset), Nationwide’s Group Director of Mortgages, said: “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.”
