Halifax customers can get up to £ 1,000 cashback from the bank if they borrow money for energy efficient heat pumps.
With the cost of heating set to rise dramatically, as the energy price cap rises from £ 1,277 to £ 1,971 for an average householdMany homeowners will be looking at ways to reduce their energy consumption.
Halifax says it hopes their Green Living Reward scheme will encourage people to consider making their homes more energy efficient.
Only 40 per cent of UK homes have an energy performance certificate of C or better.
Improving a property’s EPC rating could save consumers more than £ 300 on bills each year for each bond it moves up – which helps offset the cost of the work required, Halifax claims.
Better insulation is seen as a priority to reduce heating costs. Preventing drafts, double glazing or triple glazing and ceiling or wall insulation can all help reduce the amount of energy needed to keep a home warm.
Under the Green Living Reward scheme, Halifax says it will offer up to £ 500 cashback if customers borrow money via banks’ mortgages or loans for approved improvements to insulation, heating systems, windows and doors, heating controls, solar panels and battery storage.
The bank offers cashback of up to £ 1,000 when a customer borrows cas to install a geothermal or air source heat pump.
Currently, most homes across the country are dependent on grid gas, with less than 1 percent choosing a heat pump.
Halifax says it hopes its plan will encourage people to consider switching.
Andrew Asaam, mortgage director at Halifax, said: “The cost of heating our homes has risen dramatically this year and people will look at how they can reduce it both quickly and in the long run.
“Simple changes such as extra ceiling insulation and wood exclusion can make a difference for relatively small expenses.
“For those who have already insulated their homes well, need to make several significant improvements, are at the point where they need to update windows or a boiler, or just want to lower their CO2 footprint, the investment can be more significant .
“With our Green Living Rewards cashback offer, we hope to support these homeowners with some of the major energy efficiency improvements they may want to make, such as better insulation, solar panels or a heat pump.”
I take a look at the new scheme and how it works.
How to sign up
Halifax Mortgage Advisors can complete the registration for you, or you can register online yourself.
How it works
Halifax will aim to pay the reward to customers who qualify, within 30 days of customers telling the bank that the work is complete and submitting proof in the form of an invoice.
The bank will tell you how to do this when you sign up.
The reward will be paid into the account that finances the mortgage. If you have not set up a direct debit to pay off your mortgage, talk to Halifax to arrange the payment.
You can only claim one Green Living Reward for a property, even if you make a number of home improvements, or if you apply for more than one mortgage for that property during the qualifying period.
You cannot claim a Green Living Reward for a ground or air source heat pump installation and other qualified improvements separately.
You are not eligible if your mortgage application is made through a mortgage broker, or you change the type of application during the process, for example if you no longer borrow additional funds for home improvements as part of your loan application.
Customers will also not qualify if there are arrears on their mortgage account.
What is the government’s boiler upgrade scheme?
For the eligible, the government’s new scheme offers £ 5,000 in rebates on the cost and installation of an air source heat pump, £ 5,000 in rebates on the cost and installation of a biomass boiler and £ 6,000 in rebates on the cost and installation of a geothermal heat pump.
Before 11 April, installers will be able to open an account for the scheme with Ofgem, the scheme’s administrator, and from 23 May, the scheme will open for applications for grants and disbursements.
The subsidy will only cover biomass boilers in rural areas and in properties that are not connected to the gas network.