Octopus and Santander launch UK’s first high-street bank mortgage for Zero Bills homes

Launched in 2022, Octopus’ Zero Bills allows customers to move into homes packed with cutting-edge green tech – including a heat pump, battery and solar panels – with no home energy bills for at least 5-10 years, guaranteed.*

Santander’s Zero Bills mortgage recognises that Zero Bills homeowners have lower monthly outgoings, as they are guaranteed not to pay a penny for their home energy bills. This means eligible buyers could borrow up to £30k more than they would for a similar home with typical home energy costs.**

The announcement comes hot on the heels of the Future Homes Standard, which requires new homes to include technologies like heat pumps and solar panels – accelerating the shift towards homes that are cleaner, smarter and cheaper to run.

Demand for these technologies has surged in recent months, with households looking to escape energy market volatility. Data from Octopus Energy shows heat pump sales up 103%, solar panel sales up 78%, and EV charger enquiries up 42%, as more Brits try to boost their energy independence.***

Santander’s latest Tomorrow's Homes research shows that more than half (52%) of UK adults believe that improving the energy efficiency of their home would have a significant impact on their lives, with eight in 10 (80%) saying reducing their energy bills is the main motivation for making home improvements.**** 

Nigel Banks, Zero Bills Director, Octopus Energy, said: “Not all homes cost the same to live in, so they shouldn't all be treated the same when it comes to mortgages. Zero Bills homes come with guaranteed no home energy bills, giving homeowners lower monthly outgoings from day one.

"This mortgage with Santander recognises that lower cost of living, helping more buyers access cleaner, smarter homes and brings the benefits of Zero Bills living to even more people."

Ben Merritt, Head of Mortgages, Santander UK, said: "As the first major bank to recognise the benefits of Octopus Energy's Zero Bills homes within our affordability assessment, we're helping customers make the most of lower household outgoings when buying an eligible newbuild home.

"By taking into account the 10-year Zero Bills guarantee from Octopus, this provides greater flexibility in the amount some customers are able to borrow, helping more people access homes that are designed to be energy efficient and more affordable to run.

"This partnership is another example of how we're evolving our mortgage offering to reflect the changing needs of homeowners and support customers who are buying energy efficient homes."

Ryan Jude, Programme Director, Green Finance Institute, said: “The £242 billion flowing through the UK mortgage market each year is one of the most powerful levers we have to help households upgrade to warmer, more efficient homes. Santander’s enhanced affordability offer opens the door for more people to invest and upgrade with confidence, building momentum behind a more innovative mortgage market. 

“The GFI has long supported the role of enhanced affordability in the green mortgage market to support homeowners with low or no energy bills to be able to borrow more, and we are delighted to see Santander put this concept into practice.”

So far, Octopus has approved over 6,000 Zero Bills homes through partnerships with leading developers, such as Vistry, Thakeham, Wates and gs8. Zero Bills homes cover affordable and private rent, plus private and shared ownership properties.

Octopus Energy aims to deliver 100,000 Zero Bills homes by 2030, and has already rolled out the initiative in Germany, France, New Zealand, and the UK.