Nearly half of home buyers would want a Green Deal loan paid off before buying a property, according to exclusive research by Which?
In April we asked 2,070 adults in the UK about the Green Deal – nearly half (46%) said they would want a Green Deal loan paid off before they bought a home. While a fifth (21%) told us they’d reconsider purchasing a property that had a Green Deal attached to it.
The Green Deal launched at the end of January and provides homeowners with a loan to install energy efficiency measures,such as insulation and double glazing.
The loan is then repaid over several years via the customer’s energy bills. Watch our video about the Green Deal to find out more about how the Green Deal works.
What you need to know about the Green Deal
As more people become familiar with the scheme, they may become less wary. Awareness has increased since launch but it remains relatively low. Some 43% of respondents to our April survey had never heard of the Green Deal – back in January that figure was 59%.
If you have a Green Deal and are worried about selling your home, you could pay it off early. You may have to pay penalty fees – check with your provider. Read our Green Deal FAQs to find out more.
Legally, prospective buyers or renters must be told about any Green Deal loan attached to a property. If not, they have 90 days to complain.
Theoretically, the loan is paid off by energy savings, but if you buy a property with a Green Deal attached and are a low energy user, your repayments may be higher than your savings.
Green Deal- shop around
As with any financial product, we recommend shopping around and researching whether or not the Green Deal is right for you. Remember:
- You can get as many quotes as you want but check for charges
- There are other means of paying for energy efficiency improvements, such as extending your mortgage. The best option will depend on your circumstances.
- Read everything you need to know about Green Deal loans
- Find out how to get £270 cash back on a new boiler
- Save money: buy and install your own loft insulation