The UK government has announced plans that it says will help banks, building societies and the wider finance industry create more green finance products for homeowners.

The new products will be designed specifically for those looking to improve the energy efficiency of their properties.

Up to £20 million is being made available for lenders and other organisations through the Green Home Finance Accelerator. The government says the funding will be used to support lenders and other providers to develop, test, and pilot new and innovative green finance products.

Minister for Business, Energy and Corporate Responsibility, Lord Callanan, said: “Driving up the energy efficiency of homes won’t only reduce our impact on the climate, but will also help houses stay warmer for longer.

“Green finance products will allow households with greater means to spread costs over time, empowering them to be able to invest in their properties, improving their energy efficiency and resale value.

“Today’s funding will give more companies in the financial sector the opportunity to create and offer these products, and in so doing help households reap the benefits both in the investment to their properties, and in the savings they can make on their energy bills.”

Homes Director for Lloyds Banking Group, Andrew Asaam, said: “Around two thirds of homes don’t currently achieve an EPC C rating, meaning millions of people are living in colder, draughtier, more expensive to heat homes than they need to.

“We are committed to helping people improve their properties, cut their carbon emissions, lower their fuel bills, and live more comfortably in their homes. We will continue to develop, test, and launch products that incentivise, support, and reward energy efficiency home improvements.”