Who provides Green loans and mortgages with reduced interest rates?
In 2023 the UK government allocated 4.1 million for green loan products to enable homeowners to borrow money specifically for energy upgrades whereby the homeonwer will be able to incorporate the repayment into their regular monthly mortgage instalments.
Contributing lenders include:
Perenna Bank who are creating a mortgage product that will encourage homeowners to go for energy efficiency procedures for their residences by offering a reduction in their mortgage rate as an incentive. Ashman Bank Limited is creating a product that will evaluate the energy efficiency of properties and that will offer suggestions on how to enhance energy efficiency and incorporate the expenses of these improvements into the mortgage's duration.
Aviva Equity Release UK Limited is developing a service that will help homeowners leverage the equity in their property through a specialised lifetime mortgage which will help homeowners access the funds needed to improve the energy efficiency of their homes. Clydesdale Bank PLC, operating under the name Virgin Money is creating a customised offering of energy-efficiency products for customer properties. They will survey their customers to find out what improvements are necessary and then support them accordingly.
These projects are part of a larger group of 26 green finance products being developed and tested.