E.ON teams up with banking group to offer green mortgages

The scheme would allow first-time buyers and re-mortgagers to borrow further via a linked energy efficiency home improvement loan to improve their properties

E.ON has joined forces with a banking group to develop and pilot a green mortgage scheme for householders in the UK.

The energy supplier is working with BNP Paribas Personal Finance to offer the innovative Green Mortgage product, which would allow first-time buyers and re-mortgagers to borrow further via a linked energy efficiency home improvement loan to improve their properties.

Under the scheme, the bank would provide the energy efficiency improvement loan financing and E.ON would provide a managed service to install the energy-saving technologies such as insulation, boilers, smart meters and smart thermostats.

Other technologies such as solar panels, heat pumps, battery storage and electric vehicle charging points can also be funded as part of the trial.

The improvements funded through the loan could then result in a discounted mortgage once the energy efficiency measures have been verified via an updated Energy Performance Certificate (EPC).

Michael Lewis, Chief Executive of E.ON UK said: “We need to find ways to radically increase interest and action on energy efficiency in homes but property owners often face a significant financing barrier when wishing to do so.

“Green mortgages have the potential to be a game changer in the delivery of affordable finance and we are ready to meet the challenge for homeowners motivated to take the steps into energy efficient living.”

Energy and Clean Growth Minister Claire Perry said she is “delighted” to see how many more businesses are seizing the multi-billion-pound opportunity “to energise their communities and tackle the very serious threat of climate change.

Ms Perry is the headline speaker at Energy Live Expo on 31st October in London. To book your place (free if you’re an end user), you can e-mail [email protected].

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