Retrofit

A explanation of key terms related to retrofit, including articles addressing common questions.

1. Home retrofit

A home retrofit involves upgrading properties to improve energy efficiency and reduce emissions. Common measures include insulation, air source heat pumps, and solar panels.

There is no net zero for UK property without retrofit. Property-related businesses play a crucial role in educating and incentivising property owners to invest in retrofits.

In many cases, the cost of retrofit is much lower than perceived. The rewards are also poorly understood. More efficient homes are warmer and have lower energy bills, while starting to attract a premium on the market for its green performance.

For businesses financing those assets, such as mortgage lenders, increasing energy efficiency will also reduce their own financed emissions whilst opening new green lending revenue streams and ensuring a lower risk, higher asset value portfolio that can be leveraged in green securitisations.

Read more:

2. Retrofit loan

A retrofit loan offers borrowers affordable financing to upgrade their properties with energy-efficient improvements.

Understandably, the unfront costs of retrofit often lead homeowners to ignore the benefits of retrofit, even if the cost of the work is considered to be affordable for the homeowners.

However, easy access to large amounts of fund through renovation loans and green mortgages can remove this barrier entirely, often with generous discounts included as a reward.

Grant funding from the government may also be available to fully cover the costs of certain measures e.g. the Boiler Upgrade Scheme (which includes support for heat pumps), ECO4 and others.

From the point-of-view of the customer, these loans reduce long-term energy bills and increase property value, creating a win-win scenario for customers.

Read more:

3. Retrofit finance

Retrofit finance allows mortgage lenders to support borrowers in improving the energy efficiency of their property.

Green mortgages or renovation loans with lower interest rates or cash back opportunities are now common by mortgage lenders to help homeowners afford home retrofit improvements.

By financing retrofits, lenders can reduce financed emissions, improve portfolio value, lower risk, and align with green regulatory standards.

Read more: