Green mortgages give customers discounted mortgage rates once they have upgraded the energy rating of their home.
It comes just days after the government became the first major economy in the world to pass laws committing the UK to net zero emissions by 2050. The government says that tackling domestic emissions by improving the efficiency of the 17 million homes in the UK with an EPC below Band C will be essential to achieving this.
The GHFIF will support the development of lending products like equity loans and home improvement loans that will help homeowners make upgrades, for example offering energy efficiency advice, access to trusted installers and preferential mortgage interest rates to support them in making energy improvements to their homes.
Energy and Clean Growth Minister Chris Skidmore said:
"To fulfil our world-leading commitment to reach net zero emissions by 2050, we need an overhaul of our housing stock to tackle the disproportionate amount of carbon emissions from buildings.
"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."
