E.ON and banking group join forces to offer green mortgages
According to Financial Reporter, 71% of UK households are below an EPC Band C rating, meaning they are missing out on energy savings of up to £380 each year. The government’s Clean Growth Strategy strives to bring as many homes as possible up to Band C level of practical, cost-effective and affordable housing by 2035.
A German energy supplier and a French bank – how can they help you?
To help combat the problem, one of our suppliers, E.ON, has announced a new partnership to bring green mortgages one step closer to the UK property market. The energy firm is working with BNP Paribas Personal Finance banking group to provide a ground-breaking Green Mortgage product.
BNP are to provide the loan and E.ON to install the appropriate energy efficient solutions and offer a managed service to pinpoint what measures would lead to the biggest possible savings. The energy efficiency measures have to be verified via an updated EPC before a discounted mortgage is rewarded.
Environmentally friendly mortgages – still not convinced?
The collaboration will enable first-time buyers and re-mortgagers to reward borrowers with discounted mortgage rates for increased energy efficiency measures in their homes. Through a linked “energy efficiency home improvement loan” they will be able to borrow more to improve their energy efficiency.
E.ON claims tackling energy efficiency levels of the current housing stock is one of the “biggest infrastructure challenge” of this generation.
The expert’s voices
Michael Lewis, chief executive of E.ON UK, commented: We need to find ways to radically increase interest and action on energy efficiency in homes, but property owners often face a significant financing barrier when wishing to do so. In the UK, attempts have been made in the past to tackle this barrier through schemes like the Green Deal, but they have not been successful, in part because they weren’t designed with the customer front and centre.
“Green mortgages have the potential to be a game changer in the delivery of affordable finance and we are ready to meet the challenge for home-owners motivated to take the step into energy efficient living. Our agreement with BNP Paribas Personal Finance is a further step along this journey and brings together two well-known international companies with expertise in financing and delivering energy saving solutions across Europe.”
Stephen Hunt, CEO of BNP Paribas Personal Finance, said: “BNP Paribas Personal Finance is pleased to work with E.ON in exploring how helpful finance solutions can be developed to drive positive change within the energy efficiency sector. This collaboration will look to assess how an attractive consumer offer can be created for the UK marketplace and we continue to look at bringing new, innovative propositions to the market. As a pioneer in positive banking, we are proud to play an active role in both driving forward new sustainable business opportunities and helping the local communities in which we work throughout the UK.”
Claire Perry, Minister for Energy and Clean Growth, added: “The UK has led the world in cutting emissions whilst growing our economy – with clean growth driving incredible innovation and creating hundreds of thousands of high-quality jobs. Ten years on from the Climate Change Act, the first ever Green GB week is a time to build on our successes and explain the huge opportunities for business and young people of a cleaner economy. I’m delighted to see how many more businesses and organisations such as E.ON and BNP Paribas Personal Finance are seizing this multi-billion pound opportunity to energise their communities to tackle the very serious threat of climate change.”
As a UK leading power and gas company that supplies millions and businesses and homes, E.ON is now the second largest electricity generator in the UK, with ownership of the largest distribution network and wind farms, power stations and biomass nationwide. To discover more about E.ON and to see if they are the right supplier for you, find out more here.