The £60 million fundraising deal will enable Tandem to introduce new green mortgage products, together with digital solutions, which will mean customers can make a direct contribution to reducing their environmental impact.

Allium, a green lending business, has for the past six years been helping its customers transform their homes to become more energy efficient and environmentally friendly by offering home insulation, energy efficient boilers and double glazing.

It also helps finance solar panels, heat pumps and home charging stations.

Paul Noble, CEO at Allium, will now join the Tandem executive team. He said:  the acquisition was great news for its customers and the team which had worked ‘tirelessly’ to develop the business focussing on financing improvements for the environment.

“The combination of Allium and Tandem will create the ability to rapidly scale a green banking proposition and help more customer access green finance products,” he said.

Meanwhile, Ricky Knox, Tandem co-founder and CEO added: “Our journey so far has been filled with finding innovative solutions to customers’ money problems such as our incredibly successful Autosavings feature.

“We now have an opportunity to do even more than that. We’re delighted to welcome Paul, Allium’s team and their thousands of environmentally conscious customers to Tandem and we are excited for our future together. I look forward to helping many more people help the planet over the coming months and years.”