Long-term fixed rate mortgage lender Perenna has launched a retrofit discount feature to encourage homeowners to upgrade their properties.
Perenna said it had been looking at ways to help homeowners overcome the barriers to retrofitting their homes and making them more energy efficient. It discovered that a lack of awareness and perceived lack of financial benefit were the two main challenges faced.
The lender said the new product feature would address these concerns head-on.
Remortgage borrowers can opt in to the retrofit discount when they apply for a mortgage with Perenna.
Borrowers who complete a qualifying solar panel or heat pump installation in their home within two years are given a 0.2% reduction on their mortgage rate. The discount applies to the outstanding mortgage amount and across the remaining term.
Perenna calculated that a borrower with a £300,000 loan with a rate of 6.1% could save £41 per month through the feature and £501.90 each year. This would mean a total saving of £20,076 over a 40-year term.
The feature has been 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 development of innovative green finance products that incentivise energy-efficiency and low-carbon heating retrofit.
This project gives Perenna’s customers free access to Heatio Flexx, a smart home device developed by Heatio that monitors energy use. Heatio can also recommend tailored energy-efficiency improvements.
‘Incentivises consumers to install energy-efficient technologies’
Arjan Verbeek (pictured), 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.”
Shekina is the deputy editor at Mortgage Solutions and commercial editor at Mortgage Solutions and Specialist Lending Solutions. She has nearly eight years of experience in the B2B publishing market, having previously covered the hospitality, retail, pet, accounting and jewellery sectors.
Shekina has worked for Mortgage Solutions and Specialist Lending Solutions for almost five years. Here, she covers the market’s breaking news stories, engages with professionals in the sector, and oversees any commercially agreed content in partnership with mortgage-related companies.
This includes presenting webinars and hosting roundtable discussions on developing themes in the mortgage sector.
She is an NCTJ-trained journalist and was nominated for the Headline Money Awards Mortgage Journalist of the Year in 2021.
In her spare time, Shekina likes to read, travel, listen to music and socialise with friends.
She currently reports on current events in the mortgage market and liaises with financial clients to produce sponsored content.
Follow her on Twitter at @ShekinaMS
