As we step into 2025, the push for energy-efficient homes is stronger than ever. RetrofitĀ has become a key focus for homeowners, driven by rising energy costs, stricter government regulations, and a growing commitment to sustainability. But what is retrofit, and how are UK mortgage lenders stepping up to support these vital improvements?
What is Retrofit?
Retrofit refers to upgrading an existing property to make it more energy-efficient and environmentally friendly. With most UK housing stock built before modern energy standards, retrofitting is about transforming older homes for a greener future.
Popular retrofit measures include:
š¹ Improving insulation in walls, roofs, and floors
š¹ Upgrading to double or triple-glazed windows
š¹ Installing low-carbon heating systems, such as air or ground source heat pumps
š¹ Adding renewable energy solutions like solar panels or battery storage
The governmentās net-zero targets for 2050Ā and recent policiesāsuch as proposed minimum EPC (Energy Performance Certificate) standardsāhave made retrofit a top priority. In 2025, homeowners are increasingly seeing retrofitting as a way to future-proof their homes while reaping financial and environmental benefits.
Retrofit and Mortgages in 2025: Whatās New?
Mortgage lenders in the UK are stepping up with tailored products to encourage and support retrofit projects. Hereās whatās shaping the market this year:
1. Green Mortgages Evolving
Green mortgages continue to gain momentum in 2025, with lenders offering competitive rates for homes that meet high energy efficiency standards. Many providers now allow borrowers to finance retrofit projects and qualify for better rates once the improvements are completed.
2. Retrofit-Specific Loans
Dedicated loans for retrofitting are becoming a standard offering. These allow homeowners to borrow additional fundsāoften at lower rates than traditional borrowing optionsāto invest in energy-saving upgrades.
3. Government Incentives Boost Lender Options
The governmentās retrofit agenda in 2025 includes funding schemes and tax incentives that work alongside mortgage products. Some lenders are partnering with these schemes to offer enhanced financing solutions, including grants or cashback for energy-efficient improvements.
4. Energy-Efficiency Tied to Lending Criteria
EPC ratings are playing a bigger role in mortgage assessments. Lenders are not only rewarding energy-efficient homes but also increasingly focusing on properties with potential for improvement, offering flexible terms to homeowners committing to retrofit projects.
Why Retrofit Matters in 2025
Combat Rising Energy Costs: With energy prices still fluctuating, retrofitting your home can drastically reduce your bills.
Stay Ahead of Regulations: Stricter EPC requirements are expected to come into force, particularly for landlords.
Increase Property Value: Energy-efficient homes remain in high demand, with buyers prioritizing properties that offer long-term savings.
Protect the Planet: Retrofitting is one of the most impactful ways homeowners can contribute to the UKās net-zero goals.
How to Access Retrofit-Friendly Mortgage Products
If youāre considering retrofitting your home, hereās how I can help:
ā Ā Identify lenders offering green mortgages, cashback, or loans tailored to retrofitting
ā Understand the eligibility requirements for government schemes and incentives
ā Navigate the retrofit process while balancing your financial goals
In 2025, retrofitting is more than a buzzwordāitās a practical step towards a more sustainable, cost-effective, and future-ready home. With the right financial advice, you can make this journey smoother and more rewarding.
Emily Stonehill, Mortgage & Protection Adviser, Model Financial Solutions Ltd
Your home may be repossessed if you do not keep up repayments on your mortgage. You may have to pay an early repayment charge to your existing lender if you remortgage.
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