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22.11.2018

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    Green Mortgages

    E.ON

    E.ON is piloting an innovative Green Mortgage product, which will allow movers, first time buyers, and re-mortgagers to borrow via a linked ‘energy efficiency home improvement loan’ to improve the energy efficiency of their home and unlock an interest rate discount on their mortgage product.

    What customer problems did you set out to solve?

    Home-owners are faced with an ocean of complexity and choices when it comes to taking forward an energy efficient make-over to their home. However, once they know what they want, their next challenge is how to access affordable finance to deliver it.

    The problem we are solving is to dissolve complexity in making the right energy solution choices for a customer's home, managing the refurbishment experience and enabling access to low cost finance and a long-run mortgage cost saving by partnering with banks to offer a Green Mortgage product.

    What differentiates your proposition from other offerings in the market?

    This innovative Green Mortgage proposition concept will help unlock a triple win for customers: lower energy bills, lower mortgage rates and a warm, more comfortable home.

    E.ON will also take the hassle out of selecting the right energy efficiency upgrades for the customer's home and will install the chosen options under a 'managed service'.

    Through partnerships with banks who will market this product alongside E.ON this will be a seamless end-to-end experience. Nothing like this currently exists on the market that partners energy companies and banks to deliver benefits to people, the public and the planet.

    How have you proven that your concept has potential for impact?

    Consumer research conducted by E.ON in several European countries looked into the question of whether customers would even take advantage of a green mortgage. The result is consistently positive with the overall high level of appeal towards the concept particularly high in Italy and the UK. You can read more about the research here.

    Around 19 million UK households fall below the Government's target for energy efficiency (EPC band C) so the market potential for this innovative financing solution is huge.

    Where do you see this proposition in 12 months time?

    E.ON has partnered with BNP Paribas to develop and pilot this innovative Green Mortgage product in the UK in the first half of 2019. In 12 months time the ambition is for this product and E.ON's managed energy renovation service to be offered by major UK building societies to their customers.

    Find out more here.

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