The funding supporta energy-saving home improvements
In a groundbreaking development for sustainable home finance in the UK, five credit unions from Greater Manchester’s Soundpound Group have launched unsecured green home loans in line with the Green Home Finance Principles (GHFPs).
The move marks the first time a UK city region has achieved broad credit union-led coverage for this kind of finance — unlocking a new, values-driven pathway for homeowners to fund energy-efficient upgrades.
The new loan products are designed to support energy efficiency upgrades and home electrification, offering short-term financing for improvements such as insulation, solar panels and heat pumps. The loans typically range from £500 to £15,000 and are designed to be repaid over five years. The initiative, backed by the Greater Manchester Combined Authority (GMCA) and mayor Andy Burnham (pictured), aims to expand access to retrofit finance across nearly all boroughs in the city region.
“The Soundpound and their members will be playing an important role in modernising our built environment to support the local economy while cutting energy bills,” Burnham said. “By aligning with the Green Home Finance Principles, our credit unions are creating a greenprint, leading the way and fulfilling a critical function in making greener homes a reality for more people.”
South Manchester Credit Union was the first to introduce a GHFP-compliant product, named the Green Loan. It has since been followed by Metro Moneywise, Salford Credit Union, Manchester Credit Union and No1 CopperPot. These credit unions are also working with People Powered Retrofit, a local retrofit co-operative, to support product rollout.
The Green Finance Institute (GFI), which launched the GHFPs in 2020 with input from the Loan Market Association, has worked with the Soundpound Group to help align the loans with the national standard.
“As more Soundpound group members offer unsecured green home loans aligned with the Green Home Finance Principles, we are building the kind of local coverage that makes fair, affordable retrofit finance truly accessible,” said Ciara Davies, chief executive of Metro Moneywise and executive lead of Soundpound.
For Rhian-Mari Thomas, chief executive of the Green Finance Institute, credit unions are well positioned to adopt the GHFP model. “Credit unions are uniquely placed to innovate faster than other lenders, which makes them the perfect first-mover for GHFP-aligned unsecured green loans,” she said.
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