Nationwide have recently introduced an interest-free loan for homeowners seeking to make green energy improvements to their properties, which will be available from 1st June.
Nationwide’s Green Additional Borrowing Mortgage
With Nationwide’s new product, borrowers will be able to take out loans of £5,000 to £15,000 with a 0% interest rate, fixed for 2 or 5 years. After this time period is up, the interest will rise to Nationwide’s variable standard mortgage rate for the remainder of the mortgage term.
To qualify, borrowers must be an existing member with Nationwide mortgage and spend at least 50% of the advance on non-structural energy efficient home improvements. The listed examples by Nationwide include:
- Solar panels
- Air source heat pumps
- Cavity wall insulation
- Double glazing/replacement windows
- Electric car charging point
- Ground source heat pumps
- Loft insulation
- Small scale wind turbine
Borrowers will be able to borrow up to 90% loan-to-value, meaning they will have to fund at least 10% of the improvement costs themselves.
A Step in the Right Direction
This move by Nationwide will help to reduce the initial cost burden of green home improvements on the individual, helping to encourage sustainable living practices and energy efficient improvements.
According to Government research in 2021, around 20% of carbon emissions came from homes. Therefore, focussing on making homes greener is a significant step towards creating a more sustainable future.
According to the Greener Homes Attitude Tracker, commissioned by NatWest, cost acts as the biggest barrier to sustainable home improvements:
“According to the latest data, the cost of the work required was by far the greatest barrier, cited by 71% homeowners not planning sustainable home improvements in the next 10 years”
Even if it saves them money on their energy bills in the long-run, many homeowners simply don’t have the money spare to pay for changes upfront in one lump sum. Therefore, monetary barriers act as a huge barrier to ordinary people ‘going green’. Nationwide’s new product is a great example of how to help people become more sustainable, as it allows them to make that initial cost.
Nationwide’s Other Green Initiatives
This new product is not the only move by Nationwide to go greener. They also have a Green Reward offer where you can get cashback when buying an energy efficient home.
With this, you can claim £500 cashback when buying a property with an Energy Performance Certificate score of 92 or above, or £250 if the property has a score of 86 to 91.