Merton Council Reduces Home Energy Efficiency Loan Interest Rate

Merton Council has updated its Home Energy Efficiency Loan Scheme, reducing the interest rate from 5.5% to 4% (Representative 4.2% APR) to make energy-saving home improvements more accessible for homeowners. This initiative builds on the success of the scheme over the past 12 months and reinforces the council’s commitment to help private housing decarbonise and invest in renewables.

Bringing the interest rate in line with other local authorities and below the base rate ensures homeowners have fair access to finance for solar panels, battery storage, heat pumps, insulation, and energy-efficient windows and doors. This move is part of the council’s drive to support residents in reducing their energy bills and becoming a net-zero borough by 2050.

Councillor Eleanor Stringer, Deputy Leader and Cabinet Member for Civic Pride and Climate Change, said:

“Lowering the interest rate of our Home Energy Efficiency Loan Scheme demonstrates our commitment to making home improvements more accessible. By providing affordable finance, we’re helping residents cut their energy bills, reduce carbon emissions, and contribute to a greener Merton.”

Merton’s Home Energy Efficiency Loan, delivered in partnership with Lendology CIC, provides homeowners and landlords with loans of up to £20,000, repayable over a maximum of 10 years, with no early repayment charges.

Lendology CIC is an experienced Social Enterprise Lender, managing similar schemes with councils across the UK. The reduced rate aligns with best practices across the UK and to date, Merton Council remain the only London Borough with a dedicated Energy Efficiency Loan Scheme for homeowners.

Emma Lower, CEO at Lendology CIC, said:

“We are delighted to continue working with Merton Council to responsible finance for home energy improvements. Making energy efficiency upgrades more accessible is essential in reducing emissions from privately owned homes, which account for over 20% of the UK’s carbon footprint.”

For more information and to apply for finance, visit, https://www.lendology.org.uk/partner/view/london-borough-of-merton/

We recommend that you carry out an independent retrofit assessment to find out which works are suitable for your home and budget.