In June 2023, Nationwide launched an innovative interest-free mortgage product aimed at aiding homeowners to enhance the energy efficiency of their homes.
Eligible homeowners with a Nationwide mortgage can borrow an additional GBP 5,000 – GBP 15,000 through its Green Additional Borrowing pilot at a zero per cent interest rate that can be fixed for up to five years to finance a range of energy-efficient home improvements. These include the installation of solar panels or an air source heat pump, window and boiler upgrades, and cavity wall or loft insulation. A Home Energy Efficiency Tool, also launched by Nationwide last year, helps its customers better understand the costs and benefits of these home improvements.
With the United Kingdom’s 28 million homes contributing about 13 per cent of its carbon emissions, retrofitting existing homes and ensuring new construction meets the highest energy efficiency standards are pivotal to achieving the country’s net-zero targets.
These new products align with Nationwide’s net-zero ambitions and enable individuals to contribute towards reducing the national carbon footprint while making their homes warmer, more comfortable, and more cost-effective to heat in the long term.
Read more on Nationwide’s net-zero targets here.
This case study was originally published in the Net-Zero Banking Alliance 2024 Progress Report (October 2024).
Disclaimer: NZBA shares case studies to promote member banks’ awareness of new approaches, tools, products, services, and transactions related to financing the transition to net zero. Featuring a case study naming a particular bank does not represent an endorsement of all actions from that bank.