Green loans for homeowners
March 3rd, 2010 by 
THE ARTICLES SHOWN ARE FOR INFORMATION ONLY AND DO NOT CONSTITUTE ADVICE OR RECOMMENDATION
Homeowners looking to make their homes more environmentally friendly will be offered a wide range of new government incentives.
The initial plans include a scheme which allows homeowners to borrow money and spread their repayments over 30 year
term,longer than a traditional mortgage term,in order to keep the monthly repayment costs down.
The Department of Energy and Climate Change (DECC) says the idea, called pay as you save will allow green minded homeowners to pay for environmentally friendly home improvements from the savings they make on their energy bills as a result.
They believe that installing solid wall insulation and upgrading to a modern heating system can slash a household’s energy bill by up to £370 a year.
However, as solid wall insulation alone can cost around £7,500 per property, the DECC has been in discussions with financial services providers and mortgage lenders to devise a practical way to help people fund their eco-improvements.
The government states energy companies will pay for two thirds of the nationwide upgrades and will pay penalties if they don’t meet any targets..
It claims that homeowners won’t have to borrow more money every time they move because the debt will be passed on with the home not the borrower.
The scheme will see the loan attached to the house rather than the person who took it out, which is fine so long as the technology that has been installed, and the way it is installed, is to a suitable standard. If it isn’t and there are problems down the line.
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