Retrofit Boost: Virgin Money and Hive team up for green mortgage offering

Retrofit Boost: Virgin Money and Hive team up for green mortgage offering

Virgin Money is the latest mortgage lender to boost its presence in the emerging green mortgage market with the launch of a new product called Retrofit Boost, designed to help households finance energy efficiency improvements.

The company announced today that it is working with smart meter and energy supplier Hive to develop the new mortgage, which will give customers cashback to renovate their homes.

The new mortgage is available to private and buy-to-let customers and has a product fee of £995. Customers taking out a five-year fixed mortgage can get up to £3,000 cashback, while a seven-year fixed mortgage will earn £10,000 cashback and a 10-year fixed rate mortgage will earn £15,000 cashback.

Customers can then access a range of Hive services to make their home more energy efficient, including the option to check if they are eligible for additional grants. However, customers are also free to spend their cashback with other suppliers to make energy-saving improvements.

Green mortgage products are becoming increasingly popular. Mortgage lenders can often make more attractive offers to customers who take energy-saving measures. Renovation projects increase the value of a home and lead to lower energy bills. This reduces the risk that customers will no longer be able to repay their loan.

Richard Merrett, managing director at mortgage broker Alexander Hall and chair of The Green Mortgage Advice Initiative (GMAI), welcomed the new offering. “Virgin Money’s new Retrofit Boost product is a breath of fresh air for homeowners and landlords,” he said. “The cashback options, ranging from £3,000 to a substantial £15,000, have the potential to make a real difference, particularly when it comes to larger renovation projects such as solar, battery storage and heat pumps.”

“The critical difference in their launch is that they offer consumers a ‘what next’ option. The addition of Hive, a trusted brand that offers expert advice on energy-efficient solutions, simplifies the journey for customers by providing the ability to research and coordinate the renovation process. As a broker, it expands the range of products we can offer our customers, allowing us to have a timely conversation about improving energy efficiency at a crucial point in the homeownership journey.”

Craig Calder, head of secured lending at Virgin Money, said the new offering helps meet growing customer demand for more energy-efficient and sustainable homes.

“At Virgin Money, we recognise the growing desire among customers to create more efficient living spaces,” he said. “However, traditional financing options for home improvements can be limiting. The Retrofit Boost Mortgage is designed to break down these barriers.

“By specifically offering cashback for efficiency improvements, this mortgage product removes a significant financial barrier. The incentive enables customers to invest in a more comfortable, sustainable and potentially cost-effective living environment.”

Virgin Money said the minimum loan size available through the offering is £150,000, with the product covering loans up to £500,000.

Registration is now open for the fifth annual Net Zero Festival, hosted by BusinessGreen at the Business Design Centre in London on 22-23 October.