Homeowners across the North East can now access loans of up to £25,000 to fund energy improvements and reduce their bills, under a new £1m affordable loan scheme launched by North East Mayor Kim McGuinness.
The North East Warm Homes Loan is delivered through a partnership between the North East Mayoral Strategic Authority and Lendology CIC. It offers between £2,000 and £25,000 at a fixed interest rate of 2%, with repayment terms of up to 10 years and no early repayment charge.
Who can apply and how it works
The scheme is available across the region, with a particular focus on households experiencing or at risk of fuel poverty and homes in the private rented sector. It is designed to complement existing grants by helping people who cannot access grant funding or whose grant does not cover the full cost of the work.
Eligible homeowners and landlords can register their interest from October 8. Applications officially open on October 22, and those interested are encouraged to obtain a quote for the work they are considering before applying.
Part of wider Warm Homes offer
The loan forms part of the wider North East Warm Homes offer. Customers can also access energy-efficiency advice and grant support through the North East Warm Homes One Stop Shop, helping them understand their options before deciding whether borrowing is right for them.
Kim McGuinness said: "Everyone deserves a warm, comfortable home that they can afford to heat. But we know the upfront cost of improvements such as insulation, solar panels and low-carbon heating can put them beyond the reach of too many people."
She added: "These new affordable loans will help remove that barrier, giving homeowners and landlords practical support to improve properties, reduce energy use and bring bills down. This is another important step towards making the North East the home of the green energy revolution, while making sure local people feel the benefits in their homes and their pockets."
Repayment details and next steps
Lendology CIC will manage the loan scheme and support customers from application through to repayment. Emma Lower, CEO of Lendology CIC, said: "We’re delighted to be working with the North East Mayoral Strategic Authority to support the wider North East Warm Homes programme. Having worked with councils for over 20 years delivering responsible lending, we know how important it is that people have access to affordable options."
For example, a £5,000 loan over 60 months would require monthly repayments of £87.64, with a total amount repayable of £5,278.33, including a £20 Land Registry fee. Loans are subject to status and are typically protected by a Title Restriction, meaning the property may not be sold without permission unless the loan is fully repaid. This is not a mortgage, and missing payments could affect credit rating.
The North East MSA is encouraging anyone who may benefit to search "North East Warm Homes Loan" online or visit www.lendology.org.uk/partners/NorthEastWarmHomesLoan for more information and to register interest.
