Across the UK, more and more homeowners are experiencing what can only be described as “eco-envy”. Recent data shows that 58% of Brits are eyeing up their neighbours’ solar panels, heat pumps and EV chargers, all while watching their own energy bills creep higher. Meanwhile, 56% of homeowners understand that green upgrades can significantly reduce energy bills.

With households up against stubborn inflation and tight budgets however, while the desire to go green is absolutely there, the money needed to invest in green home upgrades often isn’t. As a result, we see sustainable home improvements taking a backseat.

As we head into 2026, a year that’s set to bring an even sharper focus on household sustainability and net-zero goals, the question of how homeowners can actually afford to make these changes is becoming increasingly urgent.

The Green Gap

From the conversations we have with homeowners everyday at Selina Finance, it’s clear that the challenge isn’t motivation. The majority want warmer, more efficient homes that cost less to run. They want solar panels that cut bills, heat pumps that reduce emissions and insulation that make the cold winter months more manageable. It’s the initial cost that stops the momentum.

Public funding does play an important role here, but the scale of the challenge means private finance also has to step up. If the UK is to see millions of homeowners make meaningful upgrades, we need innovation in the financial sector as much as the energy sector.

Introducing HELOC

In the US, Home Equity Line of Credit, or HELOC, has helped millions of homeowners make the sustainable investments in their home that the future demands. HELOC offers a flexible line of credit secured against the equity people have built up in their homes. It allows them to borrow what they need, when they need it and only pay interest and repayments on the funds they actually draw.

This type of finance is new to the UK and could offer homeowners the means to invest in green upgrades to reduce bills and support the sustainable economy.

What makes HELOC particularly suited to green home upgrades is its flexibility. Anyone who has renovated their home knows that costs shift, timelines change and quotes fluctuate. A HELOC allows homeowners to respond to that, drawing down gradually as projects progress, rather than taking out one large inflexible lump sum. Plus, unlike remortgaging, it doesn’t require homeowners to give up their existing mortgage rate at a time when rates remain extremely unpredictable.

A Smarter Way to Go Green in 2026

The UK’s housing stock is among the oldest in Europe with nearly 80% of homes being built before 1980, so the need for investment in energy efficiency is huge. Millions of homes will require better insulation, modern heating solutions and renewable energy systems to meet net-zero targets and simply to remain affordable to run. But without accessible forms of finance, those upgrades risk becoming out of reach for many.

By enabling homeowners to unlock the value already tied up in their properties, without draining savings or taking on high-cost borrowing, HELOC has great potential to close the gap between ambition and affordability.

Many UK homeowners have a lot of equity tied up in their properties, yet too many feel they can’t afford to invest in the very improvements that would lower their bills, future-proof their properties and reduce their environmental footprint. We say a more flexible approach to borrowing could change that.

As eco-envy is on the rise and the need for greener homes becomes more urgent, we believe that financial innovation will be key to helping families make the transition. HELOC isn’t the silver bullet, but it’s definitely an important step in giving homeowners a real choice and real control over how they fund their future.

If we want a greener housing market, we need financing models that support it. And with HELOC now available in the UK for the first time, we’re already starting to unlock a new and better approach to Britain’s green housing revolution.

*A HELOC is a second charge mortgage (also known as a secured loan). Think carefully before securing other debts against your home. Your home may be repossessed if you do not keep up repayments.

Article written by Henry Vaughan, VP of Growth, Selina Finance      

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