OCTOPUS AND SANTANDER LAUNCH ZERO BILLS MORTGAGE PRODUCT

Octopus Energy and Santander have launched a mortgage designed specifically for homes with guaranteed zero energy bills. The product, described as the UK's first high-street bank mortgage for Zero Bills homes, allows eligible buyers to borrow up to £30,000 more than they would for a standard property. The increased borrowing reflects the lower monthly outgoings homeowners will have, as Zero Bills properties come with a guarantee of no home energy bills for at least 5 to 10 years.

Zero Bills homes, launched by Octopus in 2022, are newbuild properties equipped with heat pumps, battery storage and solar panels. Nigel Banks, Zero Bills Director at Octopus Energy, stated that homes with lower running costs should not be assessed for mortgages using the same criteria as properties with typical energy expenses. Ben Merritt, Head of Mortgages at Santander UK, said the bank recognised the benefits of Octopus's Zero Bills guarantee within its affordability assessment process.

The announcement comes as the Government explores separate measures to reduce household energy costs. The Department for Energy Security and Net Zero has drafted a proposal to bulk-buy plug-in batteries for low-income homes, though current wiring regulations prevent their deployment. DESNZ confirmed its current focus is rolling out plug-in solar panels, which become legally available from 27 August 2026, with government research estimating typical savings of £70 to £110 annually per household.