Nationwide has added to its green borrowing range and will lend up to £20,000 at 0% interest for energy-efficient home improvements.
The mutual also says that new customers can now apply for its green additional borrowing loans as soon as their first month’s mortgage payment has been made, subject to underwriting.
Previously, new customers had to wait six months before becoming eligible for the loan.
Nationwide first launched green borrowing at 0% interest last June at up to £15,000. But it says “the take-up has been very low”, with just 1,900 applications completed since launch.
The upgraded product features:

0% fixed interest rate for the first two or five years
Loan sizes range between £5,000 to £20,000
Up to 90% loan to value

The upgrade comes as lenders seek incentives from the government in the 30 October Budget as the administration pushes ahead with its net zero targets by 2030.
Earlier this month, UK Finance said in its Budget submission that the government should establish an energy efficiency agency “with clear long and medium-term delivery targets”.
It added: “This should include offering clarity as to the date by which homeowners and landlords are expected to have made energy efficiency improvements to their homes.”
It argued that the UK should “train a new ‘green army’ of skilled workers to green the housing stock through an apprenticeship scheme”.
This came after all rented homes must meet an energy performance certificate rating of C by the end of the decade, the government proposed in September.
Rightmove estimates this will mean upgrading 2.9 million properties, costing £23.4bn and averaging £8,074 per home.
UK Finance also said the Treasury should give stamp duty rebates “to incentivise green home improvements” as well as making these upgrades VAT-free.