Personal Finance

To help you purchase energy-efficient solutions, you could consider a personal loan option.

Personal loans, also known as "unsecured" loans, offer a way to finance home improvements by spreading the cost over several months or years.

Here's what you need to know:

Benefits of a Personal Loan

Smaller Loan Amounts: Personal loans generally allow you to borrow between £1,000 and £50,000, depending on the lender, which is usually less than what's available through a secured loan.
Fixed Interest Rates: Unlike secured loans, personal loans often come with fixed interest rates, meaning your monthly payments will stay the same throughout the loan term. Repayments are typically made via Direct Debit.
No Collateral Needed: Since personal loans are unsecured, you don't need to put up your home or any other assets as collateral. This reduces the risk of losing your property if you fail to make repayments.

Higher Interest Rates: Personal loans usually come with higher interest rates compared to secured loans, and the repayment period is often shorter, typically up to 7 years.
Impact of Credit History: Your eligibility for a personal loan and the interest rate offered will depend on your credit history. It’s a good idea to shop around, as some lenders offer better rates to long-standing customers with a good credit history.
Potential for Green Incentives: Some lenders and high street banks offer discounts or cashback deals if the loan is used for energy-efficient solutions that improve your home’s EPC rating. Energy companies like Octopus also provide financing options for customers looking to implement specific solutions.