Nationwide Building Society is reducing the interest rate on its Green Additional Borrowing products to 0%.
The new 0% Green Additional Borrowing products, which will be available from 1st June, will enable up to 5,000 households with a Nationwide mortgage to borrow £5,000-£15,000 up to a maximum of 90 per cent Loan-to-Value (LTV) across the two or five-year product term.
All of the loan must be used to fund non-structural, energy-efficient home improvements, such as solar panels, air source heat pump, window upgrades, boiler upgrades, cavity wall insulation, loft insulation or an electric car charging point. Members can use any local or national contractor or supplier for the work.
The new Green Additional Borrowing home loan is available via Nationwide’s mortgage advisers as well as brokers..
Henry Jordan, Director of Home at Nationwide Building Society, said:
Residential properties are one of the biggest causes of emissions and there is a need for more to be done by government and business to encourage households to act. A key barrier to making homes more energy efficient is not only the upfront costs associated with retrofitting, but also the payback period of making such changes.
It’s clear to us that only meaningful incentives will help shift behaviour. So, by launching this latest product for up to 5,000 of the Society’s mortgage holders, we can test and understand whether offering zero per cent interest will encourage members to make the necessary green home improvements, where the costs of finance may have, until now, discouraged them. As a mutual, we’re committed to returning value back to our members, which is demonstrated by this being the first time we’ve taken this approach. Creating a greener society is a shared goal and we need to make it as easy as possible for households to play their part.
