Yes, many homeowners use second mortgages or second charge loans to raise money for home improvements, including eco-friendly upgrades. The amount you can borrow depends on the equity in your home and your income. Lenders often allow borrowing up to 75–85% of the property’s value, minus any existing mortgage balance.
Key Points
- Based on the equity in your property, you could access £50,000, £100,000 or more through a second mortgage
- You could invest in eco-friendly upgrades such as solar panels, heat pumps and smart heating controls
- Rightmove showed that eco-friendly homes sold for 16% more than those that weren’t
Second Mortgage Example For a Property Worth £800,000
If your home is worth £800,000 and you have £400,000 left on your main mortgage, the equity is £400,000. If a lender allows borrowing up to 80%, the maximum secured borrowing on the property would be £640,000.
With £400,000 already owed, you could take out a second mortgage of around £240,000. Many people borrow far less than the maximum — for example, £50,000–£100,000 — to keep repayments affordable.
See this guide on: how much you can borrow through a second mortgage
Types of Eco-Friendly Upgrades You Could Make With a Second Mortgage
You can use second mortgage funds for improvements that lower energy costs and make your home greener, such as:
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Solar panels or heat pumps
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Triple-glazed windows and better insulation
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Rainwater harvesting systems
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Smart heating controls
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Electric car charging points
These upgrades reduce energy bills and carbon emissions. For instance, Energy Saving Trust research shows upgrading insulation and heating could cut bills by up to £500 a year.
Read also: how landlords can make their properties more energy efficient
Will Making Eco-Friendly Upgrades Increase The Value of Your Property?
Eco-friendly improvements are becoming a selling point for UK buyers. A study by Rightmove found homes with the best energy efficiency ratings sold for up to 16% more than less efficient homes in the same area. For an £800,000 property, this could mean as much as £128,000 in added value if major improvements are made.
However, the real increase depends on the location, type of property, and quality of upgrades. Solar panels or a new heat pump might not always add full cost value but can help sell a home faster and make it more attractive to buyers conscious of energy bills.
Are Eco-Friendly Upgrades For The Home Worth the Investment?
Taking out a second mortgage makes sense if:
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Your monthly repayments stay affordable
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Energy savings and property value increases outweigh the loan costs
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You plan to stay in the home long enough to benefit
For example, spending £50,000 on eco-upgrades could save thousands over 10 years in energy bills and make the property more desirable when selling.
The UK government’s net-zero targets and growing demand for greener homes suggest eco-friendly improvements will only become more valuable in the future.
Overall, using a second mortgage for energy-efficient upgrades can be a smart move if you borrow carefully, focus on the most effective improvements, and consider long-term savings and property value.
