Improve and save

Climate change is one of the most hotly spoken about topics in recent years, and for good reason. However, the housing market in particular has come under fire, considering that homes are responsible for one-quarter of UK carbon emissions.

We all must do our bit and make changes before it’s too late.

Last year, the UK committed to net zero emissions by 2050. To get there, the government introduced a £5m fund to help the financial services sector develop green home products.

Nationwide Building Society earlier this month said it would give borrowers loans of up to £25,000 for green home improvements and also offer preferential interest rates to borrowers who buy new-build properties with an EPC rating of “A”. However, whilst it’s important that new builds are energy efficient, we, as an industry, need to put greater emphasis on improving the UK’s existing housing stock, particularly the oldest properties.

Research by Citizens Advice and the Energy Savings Trust has revealed that over a third (36%) of British households haven’t made any changes to the way they use energy in recent years – the equivalent of 9.7 million.

It’s clear that there is an opportunity for the mortgage industry, lenders and brokers alike to do more to encourage and help people save money and reduce their household emissions.

For example, a new Eko Cashback mortgage to help reward clients has been launched by Nationwide. Whether a client is buying an older home, or simply re-mortgaging on an existing property, customers will be given £1,000 cashback if they can improve their home’s Standard Assessment Procedure (SAP) by 10 points within 12 months after the mortgage completion date.

Once the improvements are made, customers will need to arrange for a new Energy Performance Assessment (EPA) to be carried out by a registered EPA assessor, and once verified £1,000 will be paid straight into their bank account.

Help required?

If you would like to know more please make contact and one of our advisers will be happy to assist.