Green Home Finance Innovation Fund competition - successful bids
Updated 18 October 2022
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Home Infrastructure Technology Limited (HIT) - Add to My Mortgage
This project developed a digital platform that connects green vendors to mortgage lenders. The customers of mortgage lenders that sign up to the platform are able to use it to search for energy efficiency measures that they would like to install in their homes. When the customer goes to pay for the chosen energy efficiency measure, the platform automatically recalculates their mortgage to take into account the extra finance required to pay for it. NatWest agreed to partner with Home Infrastructure Technology Limited during the pilot of this product.
Project summary report
Read the Add To My Mortgage project summary report for more information.
Lloyds Banking Group (LBG) - Green Home Mortgage
Lloyds Banking Group (LBG) developed an online home energy saving tool that allows visitors to their website to work out how energy efficient their homes are and create an individualised plan for home improvements. The project was in partnership with the Energy Saving Trust who advised on the tool development and sourced verified suppliers of energy efficiency measures. Once the customer was prepared to install energy efficiency measures, LBG supported them by offering either additional borrowing on their mortgage or a ‘green home mortgage’ for new customers.
Project summary report
Read the Lloyds Banking Group project summary report for more information.
Monmouthshire Building Society (MBS) - Valuations and Lending Underwriting Energy Reduction (VALUER)
Monmouthshire Building Society, in partnership with Rightmove, RICS and Sero Energy, developed a mortgage product and an additional borrowing product to encourage customers to install energy efficiency measures. The borrowing rates of the products reflected the extra property value gained from being a low energy home. They also developed two tools to factor energy efficiency measures into property valuation - a surveyor comparator tool and an automated valuation tool.
As part of the project, Rightmove conducted a study investigating the impact of energy efficiency improvements on a property’s value. The study identified a clear correlation between a home’s improved energy efficiency and an increase in its value in excess of market trends. 200,000 pairs of property transactions showed that homes that were initially sold with a lower EPC rating increased in value upon re-emerging in the market with a higher EPC rating.
Project summary report
Read the Monmouthshire Building Society project summary report for more information.
For more information about VALUER, please go to the VALUER website.