Only one in five people planning to make energy efficiency changes to their homes will consider government subsidies

Pay4Later
Pay4Later says it can offer better financial deals for energy efficient home improvements than government schemes such as the Green Deal
Pay4Later
Pay4Later says it can offer better financial deals for energy efficient home improvements than government schemes such as the Green Deal

New research from Pay4Later, a UK provider of point of sale credit, reveals that just 21% of those people planning to make energy efficient changes to their homes over the next 12 months are considering taking advantage of government subsidies in this area. Some 37% are aware of these but won’t use them, and 18% do not know they exist.

John Wark, marketing manager at Pay4Later said: “We believe that the low take-up of these government subsidies is down to a lack of awareness, the application process sometimes being too complicated and taking too long, and that many don’t want to pay for a survey to see if they qualify (the cost of this can be over £100). We also believe that people are increasingly waking up to the fact that they may find a more competitive financial deal elsewhere.

“We offer energy efficiency suppliers and installers instant-decision finance for their customers starting at 0% APR, which can be better than the rates offered through the government’s Green Deal, for example. This consists of a financial loan where people pay this back through the savings made via their reduced energy bills, and its typical APR varies between 7.9% and 9.2%.

“The amount of finance we have provided for energy efficiency home improvements increased by 83% between April 2014 and April 2015.”

Pay4Later’s research reveals that 58% of people are planning to make changes to their homes over the next 12 months to improve energy efficiency levels. Of these people, around 46% intend to spend over £1,000. Just over one in five (22%) will spend more than £5,000, and 6% will spend over £10,000.

Given the expenditure here, 39% intend to finance some or all of this through loans. Of these people, just over one in three will borrow up to £2,500, and 17% will borrow between £2,500 and £5,000. 8.6% – or 1.1 million people will borrow over £10,000.

In terms of the energy efficiency home improvements people plan to make, 35% intend to improve their property’s draft proofing, and 31% are looking to enhance insulation levels in their homes. Some 30% are looking to replace windows and doors.

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