Eligible buyers could borrow up to £30,000 more under the new deal
Homebuyers could secure a decade without energy bills under a new mortgage deal from Santander and Octopus Energy.
The new mortgage deal is available on selected newbuild properties that qualify for Octopus Energy's Zero Bills tariff.
The companies describe the deal as the first mortgage from a major high-street lender designed specifically for homes with guaranteed zero energy bills.
These homes are fitted with solar panels, a heat pump and battery storage to generate, store and manage their energy.
Qualifying households are guaranteed to pay nothing for their home energy for between five and 10 years.
Santander will take these savings into account when assessing how much applicants can afford to borrow.
Eligible buyers could therefore access up to £30,000 more than they would when purchasing a comparable home with conventional energy costs.
Octopus launched its Zero Bills tariff in 2022. Eligible properties include homes offered through private ownership, shared ownership, affordable rent and private rent.
Demand for green home technology has risen sharply in recent months as households seek to shield themselves from volatile energy markets.
Octopus Energy's own figures show heat pump sales have surged by 103 per cent, solar panel installations have climbed 78 per cent, and enquiries about electric vehicle chargers have jumped 42 per cent.
Consumer appetite for efficiency improvements is echoed in Santander's latest Tomorrow's Homes research.
The study found that 52 per cent of UK adults consider better home energy efficiency to be something that would meaningfully improve their lives, while 80 per cent identified lower energy bills as their primary reason for undertaking home improvements.
The announcement also follows the introduction of the Future Homes Standard, which mandates that new properties incorporate technologies such as heat pumps and solar panels.
Nigel Banks, Zero Bills Director at 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."
Ben Merritt, Head of Mortgages at 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."
Ryan Jude, Programme Director at the Green Finance Institute, described the £242billion annual UK mortgage market as "one of the most powerful levers we have to help households upgrade to warmer, more efficient homes," adding that the GFI was "delighted to see Santander put this concept into practice."
Octopus Energy has so far given the green light to more than 6,000 Zero Bills properties, working alongside major housebuilders including Vistry, Thakeham, Wates and gs8. The company has set itself a target of reaching 100,000 such homes by the end of the decade.
The programme has also expanded beyond Britain, with Zero Bills schemes now operating in Germany, France and New Zealand.
Banks added that the Santander partnership "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."
Mr Merritt described the collaboration as "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."
