The scheme has awarded funding to 26 green finance projects being developed to trial with consumers - including those for buy-to-let mortgages and equity release. Customers will be incentivised to make their homes more energy efficient by being offered lower mortgage rates.
Projects successful in bidding for funding include Aviva Equity Release UK Limited, who will receive £87,612 to design a service that allows homeowners to access equity in their property through a specialist lifetime mortgage, freeing up cash to improve the energy efficiency of their homes.
Clydesdale Bank PLC, trading as Virgin Money, will receive £171,000 for a product that will offer bespoke energy efficiency products for customers’ properties, after carrying out a survey to outline the improvements needed.
Other projects include Ashman bank, who received £200,000 to design a buy-to-let product which will be underpinned by an assessment of retrofit work needed and Perenna Bank, who have been awared £193,350 to bring a long-term fixed-rate green mortgage that incentivises retrofitting with a reduced mortgate rate.
Lord Callanan, Minister for Energy Efficiency and Green Finance, said:
"The government has put in place long-term commitments to ensure homes across the country have greater energy efficiency to reduce bills, drive down energy use and lower emissions."
"We are supporting these organisations to develop fresh and innovative ways of helping more people get better access to energy efficiency measures, such as loft insulation, double glazing and heat pumps."
Craig Calder, head of secured lending at Virgin Money, one of the winning projects, said:
"To be part of the innovative Green Home Finance Accelerator project is important for Virgin Money as we look to reinforce our aspiration to halve our financed emissions by 2030 and deliver net zero by 2050."
"Working with industry experts Sero and Rightmove is an opportunity to research, test and learn what consumers want before we take a proposition to market – enabling us to provide a great product for customers while at the same time making a positive impact on the environment."
