Nationwide is now offering its mortgage customers the opportunity to take out interest-free loans of up to £20,000.

The 0% Green Additional Borrowing products hope to incentivise homeowners to make Britain more energy efficient.

To qualify, the loans must be spent on improving a property’s energy efficiency.

This will enable Nationwide mortgage holders to borrow between £5,000 and £20,000 up to a maximum of 90 per cent Loan-to-Value (LTV) across a two or five-year term.

Nationwide was the first major lender to offer green borrowing at 0% in June 2023, with a maximum limit of £15,000.

However, take-up has been very low, with just 1900 applications completed since launch until the end of September 2024.

At the same time, Nationwide is also removing a requirement for new customers to wait six months before becoming eligible to apply for the loan.​

It hopes that by making the product even more attractive and by removing barriers to access more people will be encouraged to apply.

See more about the loan terms and conditions via the Nationwide website.

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Graham Lloyd, Head of Strategy and Sustainability at Nationwide, said: “We believe the UK’s 2050 net-zero target can only be met through incentivising people to invest in their homes.

"As a mutual, we have chosen to make a difference, which is why we’re making it as easy and attractive as possible for our mortgage customers to retrofit their properties.

"But much more needs to be done and we need both the government and businesses to step in and step up to create meaningful progress. This cannot continue to be kicked down the road, as it has been for some years now.”