Santander and Octopus Energy launch market-first home loans
Santander and Octopus Energy have partnered to launch the UK’s first mortgage from a high-street bank designed specifically for Octopus Zero Bills homes.
Santander’s Zero Bills mortgage is available on selected newbuild homes eligible for a guaranteed 10 years of no home energy bills thanks to Octopus’ world-first Zero Bills energy tariff. The no-spend energy pledge means that means eligible buyers could borrow up to £30k more than they would for a similar home with typical home energy costs, says Santander.
The Zero Bills tariff was launched in 2022, allowing customers to move into energy-efficient homes with features such as a heat pump, battery and solar panels, requirements of the recently-announced Future Homes Standard.
Increased green tech demand
Octopus Energy says that demand for such green technologies has increased recently, with heat pump sales up 103%, solar panel sales up 78%, and EV charger enquiries up 42%.
Meanwhile, research from Santander shows that more than half (52%) of UK adults believe that improving the energy efficiency of their home would have a significant impact on their lives, with eight in 10 (80%) saying reducing their energy bills is the main motivation for making home improvements.
Ben Merritt, head of mortgages at Santander UK, said: “As the first major bank to recognise the benefits of Octopus Energy’s Zero Bills homes within our affordability assessment, we’re helping customers make the most of lower household outgoings when buying an eligible new-build home.
“By taking into account the 10-year Zero Bills guarantee from Octopus, this provides greater flexibility in the amount some customers are able to borrow, helping more people access homes that are designed to be energy efficient and more affordable to run.
Ryan Jude, programme director at the Green Finance Institute, said such offerings encourage green investment. “The £242 billion flowing through the UK mortgage market each year is one of the most powerful levers we have to help households upgrade to warmer, more efficient homes. Santander’s enhanced affordability offer opens the door for more people to invest and upgrade with confidence, building momentum behind a more innovative mortgage market.”
So far, Octopus has approved over 6,000 Zero Bills homes through partnerships with leading developers, such as Vistry, Thakeham, Wates and gs8 and aims to deliver 100,000 Zero Bills homes by 2030.
