Nationwide offers interest-free heat pump loans

UK: The Nationwide Building Society is offering interest-free loans of up to £15,000 to its current mortgage holders who install heat pumps.

The new 0% Green Additional Borrowing products, which will be available from 1 June, will enable up to 5,000 households with a Nationwide mortgage to borrow £5,000-£15,000 across two or five-year fixed terms.

The loan must be spent on non-structural, energy-efficient home improvements. In addition to heat pumps, this would also include solar panels, window upgrades, boiler upgrades, cavity wall insulation, loft insulation or an electric car charging point.

“It’s clear to us that only meaningful incentives will help shift behaviour. So, by launching this latest product for up to 5,000 of the Society’s mortgage holders, we can test and understand whether offering 0% interest will encourage members to make the necessary green home improvements, where the costs of finance may have, until now, discouraged them,” said the Nationwide’s director of home Henry Jordan.