Under a new partnership between the two companies, Santander will remove household energy bills from its affordability calculations for customers buying homes built to Octopus’s Zero Bills standard.
Octopus Energy launched the Zero Bills tariff in 2022. It applies to new-build homes fitted with a heat pump, battery storage and solar panels, and guarantees residents will pay nothing for their home energy for at least 5-10 years.
Santander said the guaranteed absence of home energy bills means buyers may have more disposable income each month to put towards mortgage repayments.
Borrowing could rise by up to £30,000
The change could be significant for larger properties in particular. Santander said buyers of a five-bedroom Zero Bills home could be able to borrow up to £30,000 more than they would under its standard affordability assessment, depending on the mortgage term.
EPC planning: act now or risk the rush later
Sponsored by BM Solutions
Illustrative figures published by the bank show potential increases ranging from around £10,900 for a one-bedroom property on a 25-year term to nearly £30,000 for a five-plus-bedroom home on a 40-year term.
Energy-efficiency costs remain a barrier
The announcement also draws on Santander’s research into UK attitudes to home energy efficiency.
The bank’s Tomorrow’s Homes report, based on a February 2026 survey of nearly 2,000 UK adults carried out by Ipsos, found that just over half of adults think improving their home’s energy efficiency would make a meaningful difference to their lives.
Eight in 10 cited cutting energy bills as their main reason for wanting to make home improvements, while around half said they wanted a more comfortable home.
However, more than half of respondents said the upfront cost of energy-efficiency upgrades was stopping them from making changes. Santander said adjusting its mortgage assessment, rather than requiring buyers to retrofit an existing property, could help address that cost barrier for those buying new-build Zero Bills homes.
Sean Pape, head of homes propositions Santander UK, said: “As the first major bank to recognise the benefits of Octopus Energy’s Zero Bills homes within our affordability assessment, we’re helping customers make the most of lower household outgoings when buying an eligible new-build home.
“By taking into account the 10-year Zero Bills guarantee from Octopus, this provides greater flexibility in the amount some customers are able to borrow, helping more people access homes that are designed to be energy efficient and more affordable to run.
“This partnership is another example of how we’re evolving our mortgage offering to reflect the changing needs of homeowners and support customers who are buying energy-efficient homes.”
Nigel Banks, Zero Bills director at Octopus Energy, said: “Not all homes cost the same to live in, so they shouldn’t all be treated the same when it comes to mortgages. Zero Bills homes come with guaranteed no home energy bills, giving homeowners lower monthly outgoings from day one.
“This mortgage with Santander recognises that lower cost of living, helping more buyers to access cleaner, smarter homes and brings the benefits of Zero Bills living to even more people.”
