0.2% Mortgage Discount For Retrofit
A mortgage provider has finally stepped up and provided an incentive to property owners to retrofit their properties
The detail..
Perenna has announced the launch of its retrofit discount - a new product feature designed to incentivise homeowners to retrofit their properties.
Since 2023, Perenna has been investigating ways in which finance providers could help homeowners overcome the barriers to retrofit. Two major barriers identified were a lack of awareness and a perceived lack of financial benefit.
The retrofit discount is a feature that remortgage customers can opt-in to when they apply for their Perenna mortgage. Customers who complete a qualifying solar panel or heat pump installation at their home within two years are rewarded with a 0.20% reduction in their mortgage rate. The discount applies to the outstanding mortgage amount and across the remaining term.
A homeowner with a £300,000 mortgage could see lower mortgage payments of over £40 per month, adding up to over £500 per year and £20,000 over the whole term, before considering any potential benefits from lower energy bills and higher home values.
This pilot project is funded by the UK Department for Energy Security and Net Zero through the Green Home Finance Accelerator (GHFA). The GHFA was established to support the design and development of innovative green finance products that incentivise domestic energy efficiency and low carbon heating retrofit.
As part of this project, Perenna also enables its customers to get complimentary access to Heatio Flexx. Heatio - Perenna's partners in the GHFA programme - are a clean technology solutions provider who help homeowners to make energy-efficient improvements with a bespoke home energy upgrade plan.
Arjan Verbeek, founder and CEO of Perenna, said: "We are thrilled to begin piloting our retrofit discount. More than ever, tackling climate change is a social and economic imperative and businesses must collaborate with the Government to accelerate our journey to net zero.
"Homeowners are fundamental to this. This product will enable homeowners to lower their energy consumption, utility bills and mortgage repayments."
Simon Roberts, founder and CEO of Heatio, added: "For too long, green technology for the home has only been accessible to the affluent. If we are to help more people lower their energy bills and reach net zero, we need to make it easier and more financially viable for everyone to make the transition to green technology like heat pumps and solar panels. Heatio's intelligent energy platform supports and incentivises consumers to install energy-efficient technologies, providing real-time energy insights and optimising smart home technology to reduce bills and decarbonise new and existing homes. We are delighted to be working with Perenna to ensure clean, renewable energy is affordable and manageable for every home, driving the transition to a sustainable future."
About the author
Martin began his landlord journey 18 years ago, while working in an international role for a global telecommunications company. Since retiring he has extended his portfolio, which he manages with his wife, but has always focussed on the ‘small student HMO’ sector preferring to offer homes in the community for small groups to the more common ‘pack them in and take the money’ mentality. He has chaired the PDPLA for the past 9 years and has overseen the Associations transition from small local self-help group to a much larger and more professional institution which is recognised and listened to nationally. Alongside his PDPLA role, he also has leadership roles in a number of other local organisations – bringing his unique perspective, driving for change and increased use of technology while respecting the history that brought us here.