UK-based green fintech startup Add To My Mortgage, working with NatWest, has today announced £1.1 million funding to help homeowners invest in energy efficiency and renewable energy using their existing mortgage.
Solar panels. Courtesy of Jaggery
The funding has been provided by the Department for Business, Energy and Industrial Strategy’s (BEIS) Energy Innovation Programme Green Home Finance Innovation Fund, to accelerate the launch of their point of sale finance solution. By connecting mortgage lenders and a network of accredited green vendors, Add To My Mortgage enables homeowners to quickly and simply invest in upgrades to heating, insulation and renewable energy generation, using their existing mortgage.
An estimated £200 billion investment in UK homes is needed to improve their energy efficiency if the Government’s 2050 net-zero carbon target is to be met. Installing green measures like heat pumps and solar panels will play a pivotal role in reducing CO2 emissions, but the high cost is a barrier for many homeowners.
Additional borrowing on an existing mortgage solves this, by removing the upfront cost, spreading payments over the life of the equipment, and providing the lowest cost of finance for many homeowners and landlords. Add To My Mortgage’s digital platform will transform the current slow and cumbersome application process into a seamless transaction that green vendors can offer their customers at the point of sale.
“With households under increasing financial pressure, and green vendors only just returning to work post COVID-19, we see a great opportunity for Add To My Mortgage to help more homeowners invest in green home improvements, bring more work to installers, and support the UK in meeting its net-zero carbon commitments whilst growing the economy” said Rory Duff, Co-founder & CEO of Add To My Mortgage.
Lloyd Cochrane, Customer Goal Lead of Home Buying and Ownership at NatWest, added that the bank thinks this is an important move that the industry should support.