Green Deal Interest Rates
For business owners and home owners looking to take the Green Deal to make your business or home more energy efficient, the Green Deal Finance Company announced that loans would be charged at an initial interest rate.
Industry figures had expected the rate to around the 7% mark but the Green Deal Finance Company announced figures of 6.96%. The Green Deal Finance Company will lend to the approved providers and comments that their rates are competitive in comparison to high street rates for long term unsecured loans.
For Example: For a £5,000 improvement green deal loan taking into account the administration costs and operating fees, a 10 year loan (120 months) will have an overall interest rate of 7.96% whilst a 25 year loan (300 months) will have a rate of 7.67%. The more energy efficiency measures a household or business takes the cheaper the all in cost will be.
What are your thoughts on the Green Deal?