Interest rates for the Green Deal

Date: 19th Sep 2012   By: ciaran   Comments 5

Green deal interest rates

Interest rates set to be competitive but are they going to be enough to get people on board?

It looks like the interest rates for the Green Deal are going to be in the 7.5% range, according to Ed Davey, Secretary of State for Energy and Climate Change.

This is a competitive rate for an unsecured loan. If you were to add the maximum amount for domestic consumers, £10,000 over 25 years, which is the maximum amount of time (you can choose a shorter period if you want) the best rate I could find online was 14.5%. Remember that the Green Deal loans are unsecured loans and not attached to you.

What do you think of the interest rate? Is it competitive enough to get you motivated to have work done on your home? Answers below.

 

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5 Responses to Interest rates for the Green Deal

  1. Andrew Ford (@agaford) says:
    September 19, 2012 at 3:09 pm

    I can get A great low rate of 5.7%APR representative on loans from £7,500 to £15,000 from Tesco unsecured http://www.tescobank.com/personal/finance/loans/ or be it over 10 years not 25.

    Also the GD Loan is secured on the electricity meter and such if you do not pay your electricity can be cut off. It is not considered an unsecured loan.

  2. ciaran says:
    September 20, 2012 at 9:04 am

    Would the benefit of guarantees on works and products sway you to take up the Green Deal? Or do you think people will opt to get the work done on their own?

  3. sally says:
    September 24, 2012 at 10:01 am

    The rate is not that good and what happens to the loan if you move house? Does it go with you even if you move to a new heavily eco house to save money or does it stay attached to the property for the new owner? Most people will not stay in their house for as long as the loan and will not want another loan hanging round their ears if they move. Can these loans be paid off at any time?
    Too many questions and not enough answers on the DECC site.

  4. ellen says:
    September 25, 2012 at 7:22 pm

    The guarantee would be attractive but I think homeowners will opt for a normal loan if they really want the work done as we don’t yet know the effects of the gd finance on ability to sell. Afterall the way one household uses a property can vary greatly and so the initial gd assessment based on the golden rule may mean savings for one and not the other.

  5. ciaran says:
    September 26, 2012 at 5:20 pm

    The loan stays with the property. So when you seel the property the loan passes on to the new bill payer. You can pay the loan off at any time if you so wish. Hope this helps :)