Low-cost finance supports the greening of UK homes

Nationwide has launched a report which sets out the actions needed to encourage home decarbonisation across the UK.

28 million UK homes are significant contributors to greenhouse gas emissions, accounting for approximately 15% of the national total emissions, which is why retrofitting is such a critical part of the journey towards the UK’s 2050 net-zero ambition.

Research findings:

As part of the report, Nationwide conducted research amongst its mortgage customers who had either taken the 0% borrowing or had not yet done so. It uncovers eight findings, which Nationwide believes need to be considered when determining actions that government, business and banks and building societies can take to encourage home decarbonisation:

1. Customers believe responsibility for funding energy efficiency lies primarily with government.
2. There are numerous and complex barriers to retrofitting and finance is just one of them.
3. Many homeowners judge retrofit success by a reduction in bills.
4. Finance sits too late in the retrofit journey to drive any new demand – low-cost finance is just one component.
5. 0% borrowing appeals to those already interested and planning a retrofit change.
6. The vast majority of 0% Green Additional Borrowing applications come from customers going direct to Nationwide because the minimal fees on small borrowing amounts drives very little commercial return for intermediaries.
7. Homeowners would value more support in identifying tradespeople.
8. Well-known technologies are being installed to fix perceived issues.

Nationwide have reviewed their Green Additional Borrowing products and aligned with the launch of the report have made several changes to support easier access to 0% Green Additional Borrowing. You can read the full report here.

Nationwide is also calling on Government to do more by taking decisive action in promoting the greening of homes, by setting out a list of recommendations aimed at driving demand for home improvement measures. Recommendations include:

1. More public awareness campaigns showing people the benefits of retrofitting and linking to information and advice.
2. Create a National Retrofit Hub, which would support consumers from the beginning to the end of the retrofit journey.
3. Energy companies to highlight benefits to customers where a retrofit need exists.
4. Further collaboration between lenders and government, to support customers who are able to pay for improvements.
5. Incentivise banks and building societies to offer their mortgage customers low-cost additional borrowing for retrofits.

Learn more about Nationwide’s 0% Green Additional Borrowing changes here.

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