Nationwide is set to double the number mortgage customers who will be able to benefit from its interest-free green loans.

The 0% Green Additional Borrowing products were initially launched in June 2023 with the aim of supporting 5,000 households with a Nationwide mortgage to improve the energy efficiency of their homes.

Nationwide says it has now committed to doubling that to 10,000 households.

Nationwide mortgage customers can borrow between £5,000 and £20,000 up to a maximum of 90% loan-to-value (LTV) across a two or five-year term.

Customers can apply for the additional borrowing as soon as their first mortgage payment has been taken.

Since its launch, Nationwide has lent around £60 million to customers, with an average loan size of around £13,000.

The installation of solar panels and insulation, as well as new windows, are the most popular energy-efficient improvements customers have used loans for.

Nationwide says the South West has seen the highest take up, accounting for 16% of all Green Additional Borrowing completions, followed by the Outer Metropolitan and Outer South East regions, both at 12%.

Nationwide group director of mortgages Henry Jordan says: “We are committed to helping our members improve the energy efficiency of their homes. Extending our zero per cent Green Additional Borrowing products will help another five thousand households who want to retrofit their home and can afford long-term investment but struggle to meet the upfront costs.”

“However, more is needed and collaboration is crucial if we are to decarbonise the UK’s housing stock. We are, therefore, delighted to be part of the Green Home Finance Strategic partnership, which will play a leading role in helping to unlock the changes needed to make our homes resilient for the future.”

Nationwide is also a member of the Green Home Finance Strategic Partnership, an initiative between the government and the Green Finance Institute that was announced as part of the Warm Homes Plan.

Also commenting on the Nationwide’s latest changes is Propertymark NAEA president Mary-Lou Press, who says: “Initiatives like this that support retrofitting not only help homeowners reduce their energy bills and carbon emissions, but also play a crucial role in improving the overall sustainability of the UK’s ageing housing stock.”

“However, while this pilot is a positive step, broader and more accessible green financing solutions are needed across the market so that more property owners can benefit.”

“To truly unlock retrofit opportunities at scale, Governments across the UK, lenders, and the property industry must work together to ensure that support, supply-chain capacity and consumer awareness keep pace with net-zero ambitions.”