Green mortgages could help households save money on repayments and on their energy bills while also reducing emissions.
As part of its Green Finance Strategy, the Government is to put £5 million into a fund that will help increase the number of mortgage products that encourage homeowners and buyers to improve the energy efficiency of their property.
Homeowners would be offered more competitive interest rates by lenders when they upgrade their home’s energy efficiency. The government funds will go to lenders to help them develop more green home finance products such as equity loans and home improvement loans.
The Green Finance Strategy includes a £10 million innovation fund that will be used to encourage industry to retrofit older homes as part of a drive to improve the energy efficiency of 17 million homes across the UK.
The innovation fund will reward companies that design innovative ways to upgrade our older housing stock.
Zero emissions target
The Government has pledged that the UK will have net zero emissions by 2050. One of the first steps to that goal is to improve the efficiency in domestic homes, which are currently responsible for 15 percent of UK carbon emissions.
Chris Skidmore, Energy and Clean Growth Minister, said: “By rolling out more green mortgages and reducing the costs of retrofitting older homes, we’re encouraging homeowners to improve the efficiency of their homes and save money on their energy bills, helping to ensure everyone has access to a warm and comfortable home.”