The United Kingdom has set ambitious goals for energy efficiency. The domestic housing sector has a long way to go to get to where it needs to be for a net-zero future. Thus, we need to see the installation of as many energy measures as possible in domestic homes over the next few years. Nationwide is working to enable that with its newest lending scheme.
Nationwide’s 0% Interest Green Additional Borrowing Product
Nationwide previously offered a green additional borrowing mortgage which allowed homeowners to borrow money along with their mortgage to fund the installation of energy measures. This used to be borrowed at a rate of 3.89% interest. Now, they have adjusted that scheme to reduce the interest rate to 0%!
This new provision will allow homeowners with a Nationwide mortgage to borrow between £5000-£15000 up to a maximum of 90% LTV (Loan to Value) across a 2 or 5-year period. This opportunity will be made available to up to 5000 people. The loan will be handled by brokers, who will deal with the customers.
It is stipulated that the entirety of the loan must go toward non-structural, energy-efficient home improvements. This covers a number of energy upgrades, including:
- solar panels
- air source heat pumps
- window upgrades
- boiler upgrades
- cavity wall insulation
- loft insulation
- electric car charging points
The new scheme will be launched on the 1st of June; it will replace the previous scheme which will be withdrawn on May 31st.
The Goal
It is hoped that this revision will encourage people to install energy efficiency measures in their own homes. In some cases, the cost of improvements could be the only thing holding people back from improving their homes. By reducing the financial burden, Nationwide is trying to ease the difficulties which accompany energy efficiency upgrades to make it an option for more people. Being able to pay at 0% interest will save customers a significant amount of money.
The Financial Reporter demonstrates it this way:
“If a member borrowed the maximum £15,000 over a five-year term, the monthly payment on the existing green additional borrowing product at a rate of 3.89% would be £275.50. For those taking out the new version, the payment would reduce by £25.50 per month to £250, meaning the member would save £1,530 over the full term of the deal.”
Overall, Nationwide’s 0% interest green additional borrowing product will make it easier for many homeowners to improve their homes. This is a positive step in the direction of a more energy-efficient future, particularly in the domestic sector. As we try to cultivate a country of warmer, healthier homes, schemes like this continue to make waves in the industry.
This scheme and many others like it demonstrate the attention currently on energy in our homes. It is an important topic and a fast-growing industry. As it is such, the UK needs more energy professionals to support it. If you would like to get involved in the energy industry, particularly with domestic houses, please consider training as a Domestic Energy Assessor. You can browse Energy Trust’s training courses online to find now which suits you. Please give us a call at 0333 012 0002, or drop us an email at helpline@energy-trust.co.uk to find out more.
