The product will focus on homes that need to be upgraded to become energy efficient
Startup bank Perenna has been awarded grant funding by the UK government to expedite the decarbonisation of the nation’s housing stock.
The funding comes as part of the Green Home Finance Accelerator (GHFA), a government initiative aimed at fostering financial products promoting domestic energy efficiency and low carbon heating retrofits.
Having initially secured a place in the GHFA in May 2023, alongside consortium partners Heatio and Energy Systems Catapult, Perenna has now successfully secured additional grant funding for the next phase of the accelerator. This upcoming stage will see Perenna take the lead in designing, developing, and piloting its green long-term fixed-rate mortgage product. The product aims to incentivise homeowners to implement energy efficiency enhancements at their residences.
Distinguishing itself from other green mortgages, the Perenna Retrofit Mortgage focuses on homes in need of upgrades, rather than those already energy efficient. Offering the advantages of its flexible long-term fixed-rate mortgage, launched in Q4 2023, the product introduces a green rate discount, rewarding customers for reducing energy usage. Upon completing a qualifying retrofit, customers will get a switch to a lower mortgage rate, resulting in reduced monthly payments for the remainder of their term.
“Perenna wants to change the narrative on renewable energy technologies,” Arjan Verbeek (pictured), founder and chief executive at Perenna, commented. “There are too many obstacles currently to retrofitting a property, with confusing offers and unclear steps on what to do. This needs to change if we want to solve one of the biggest challenges for achieving net zero.
“We are delighted to be part of the Green Home Finance Accelerator and have the opportunity to work with Heatio and Energy Systems Catapult to pilot an innovative mortgage product that combines long term security with improvements in home energy efficiency.”
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