Nationwide launched its 0% Green Additional Borrowing products in June 2023, aiming to support 5,000 households who had a mortgage with the mutual to make their homes greener. The mutual has now committed to doubling that number to support more households.
The 0% Green Additional Borrowing mortgage allows existing mortgage holders to borrow between £5,000 and £20,000 up to 90% loan to value (LTV) across a two- or five-year term. Borrowers can apply for additional borrowing as soon as their first mortgage payment has been taken.
Since the product launched, Nationwide has lent around £60m to borrowers, with an average loan size of around £13,000. These loans have helped fund the installation of solar panels, insulation and new windows, which Nationwide said were the most popular uses for the additional borrowing.
Nationwide said the product had the highest take-up in the South West, with the region accounting for 16% of all completions, followed by the Outer Metropolitan and Outer South East regions, both making up 12% of completions.
Nationwide is also a member of the Green Home Finance Strategic Partnership, an initiative between the government and the Green Finance Institute (GFI) that was announced as part of the Warm Homes Plan. The partnership brings together financial services providers, the energy sector and consumer groups to ensure green home finance is available for the mass market, helping people to retrofit their homes.
Henry Jordan, 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 5,000 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.”
Mary-Lou Press, president of NAEA Propertymark (National Association of Estate Agents), added: “Initiatives like this that support retrofitting not only help homeowners reduce their energy bills and carbon emissions, but also play a crucial role in improving the overall sustainability of the UK’s ageing housing stock.
“However, while this pilot is a positive step, broader and more accessible green financing solutions are needed across the market so that more property owners can benefit. To truly unlock retrofit opportunities at scale, governments across the UK, lenders, and the property industry must work together to ensure that support, supply chain capacity and consumer awareness keep pace with net-zero ambitions.”
