At least half of the Green Additional Borrowing product must be used to fund a range of sustainable enhancements, from solar panels and boiler upgrades to traditional insulation and electric vehicle charging stations.

Nationwide’s decision to offer green home loans forms part of the Society’s £1 billion pledge to reduce the carbon footprint of Britain’s homes. The society is urging the government to reform property taxation and housebuilding to provide a clear incentive to improve the energy efficiency of homes across the country. UK homes, and the energy they use, account for 15% of the country’s carbon emissions.

The loans offer rate reductions of up to 0.69% from Nationwide’s existing no fee, two and five-year fixed further advance rates. As a result, rates will start from just 1.0%, with no product fee.

Green Additional Borrowing is available via Nationwide’s mortgage consultants in branch or on the phone. Members can borrow between £5,000 and £25,000, up to a maximum of 90% LTV.

There are also no restrictions on suppliers – members are able to select any national or local firm when making the improvements.

Henry Jordan, Nationwide’s director of mortgages, commented: “It’s becoming ever clearer there is an urgent need to reduce the carbon emissions from our homes. We believe meaningful incentives are the only realistic way to help people make their homes more sustainable, which is why we launched our new Green Additional Borrowing product.

“This new loan is the first product we are launching as part of our wider commitment to make £1 billion available to kickstart green home improvements.

“With more than 1.5 million homes on our mortgage balance sheet, we believe offering this new loan can make a real difference as we play our part in helping to tackle the climate crisis and help members to do the same.”