Borrowers are also able to apply for the further advance immediately after their Nationwide mortgage has completed. Previously, borrowers had to wait six months.
The 0% Green Additional Borrowing loan must be used to pay for energy efficiency home upgrades and can be taken out on a two- or five-year fixed rate basis.
Homeowners can borrow between £5,000 and £20,000 up to 90% loan to value (LTV) which includes the existing mortgage balance.
By making improving the terms of the loan, Nationwide hopes to encourage more borrowers to take out the green mortgage finance. Since the loan was launched in June 2023 to September 2024, 1,900 applications have been completed.
Along with criteria changes to the further advance, the mutual has also launched a report, How low-cost finance supports the greening of UK Homes.
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Government should “step up”
According to the report, the UK’s stock of 28 million homes accounts for approximately 15% of the UK’s greenhouse gas emissions.
Nationwide’s research found that homeowners believed the government was responsible for greening our homes and that there were more barriers to retrofitting homes than just obtaining finance.
The findings also revealed that the majority of green further advance applications come from customers going direct to Nationwide because the minimal fees on small loan amounts offered little commercial return for brokers.
Nationwide is calling on the government to do more to promote the greening of homes.
Graham Lloyd, Nationwide’s head of strategy and sustainability, said: “We believe the UK’s 2050 net-zero target can only be met through incentivising people to invest in their homes.
“As a mutual, we have chosen to make a difference, which is why we’re making it as easy and attractive as possible for our mortgage customers to retrofit their properties.
“But much more needs to be done and we need both the government and businesses to step in and step up to create meaningful progress. This cannot continue to be kicked down the road, as it has been for some years now.”
