With energy bills still a big concern for many households, improving the energy efficiency of your home is becoming a priority for homeowners across the UK.
The good news is that some mortgage lenders are now offering “green additional borrowing” options, allowing homeowners to borrow money at very low or even 0% interest, for a fixed period to make energy-saving improvements to their property.
At Oak Mortgages, we’re seeing more clients ask how they can upgrade their homes to reduce bills while keeping borrowing costs manageable.
Here’s how these schemes can work.
What Is Green Additional Borrowing?
Green additional borrowing allows homeowners to borrow extra money on their mortgage specifically to fund energy-efficient improvements.
This could include upgrades such as:
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New double or triple glazed windows
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Loft or wall insulation
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Smart heating systems or smart thermostats
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Solar panels
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Heat pumps
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Energy efficient doors
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Improved ventilation systems
The aim is simple: help homeowners reduce energy consumption and improve EPC ratings.
How Much Can You Borrow?
Some lenders currently allow homeowners to borrow:
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£5,000 up to £20,000
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Often without product fees
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Sometimes at very low or even 0% interest for an initial period
The borrowing is usually available up to around 90% loan to value, depending on the lender and the customer’s circumstances.
Because the funding is tied to energy improvements, it can sometimes offer better terms than standard additional borrowing.
Do You Have to Wait Before Borrowing More?
Traditionally, if you take out a mortgage and later want to borrow more, lenders may require you to wait around six months before applying for additional borrowing.
However, some green borrowing products allow homeowners to apply much sooner, sometimes after their first mortgage payment has been made, subject to affordability checks.
This can be particularly helpful for buyers who:
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Have just purchased a property
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Know improvements are needed straight away
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Want to complete energy upgrades quickly
Why Energy Efficiency Matters
Improving your home’s energy efficiency doesn’t just help the environment, it can also:
✔ Reduce monthly energy bills
✔ Improve comfort and heating efficiency
✔ Increase your home’s value
✔ Improve EPC ratings
✔ Make your property more attractive to future buyers
With upcoming government discussions around EPC requirements and sustainability, many homeowners are starting to future-proof their properties now.
Can Everyone Access Green Mortgage Borrowing?
Not always.
As with any mortgage borrowing, lenders will still assess:
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Income and affordability
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Credit history
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Current mortgage balance
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Property value
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Loan-to-value limits
Different lenders also have different criteria about what improvements qualify.
That’s why speaking to a broker can be helpful, as we can look across the market to see what options may be available.
Thinking About Making Your Home More Energy Efficient?
If you’re planning improvements such as new windows, insulation, solar panels or heating upgrades, there may be mortgage options that help you fund those changes in a cost-effective way.
At Oak Mortgages, we help homeowners explore their options and understand whether additional borrowing could work for their situation.
Sometimes the right solution might be:
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Additional borrowing
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A further advance
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A remortgage
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A specialist green mortgage product
Every situation is different, which is why advice matters.
Speak to Oak Mortgages
If you’re thinking about improving the energy efficiency of your home and want to understand the borrowing options available, our team is here to help.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.