TGDFC has announced the interest rates for the loans available under the Green Deal – which goes live on Monday 28 January – and has revealed customers “doing the basics” face an all-in cost of 9.34 per cent over 25 years.
The initial interest rate has been set at 6.96 per cent, but customers taking out finance from TGDFC can expect to pay at least one percentage point more than this.
Someone taking out “the full package”, including loft insulation and solid wall insulation, will face interest rates between 7.96 per cent for a 10 year loan, to 7.67 per cent over 25 years.
There will also be a £63 set up charge and an annual operating cost of £20, which the Green Deal provider may add to the overall cost of the loan.
Mark Bayley, chief executive officer of TGDFC, said: “TGDFC has been formed to deliver transparent, competitive long term finance to as many households as possible, helping people to install the maximum number of energy efficiency features that can be self-financed through savings in their energy bills. ”
Bayley added that he expects the finance to be available to 80 per cent of the UK population but TGDFC would “lend responsibly”.
He said: “We will work with leading local authorities and providers to see how tailored local support, combined with the Government’s £540m Affordable Warmth and Carbon Saving Communities programmes, can reach those who need additional help.”