Five credit unions in Greater Manchester – all members of the Soundpound Group – are now offering unsecured green home loans aligned with the Green Home Finance Principles (GHFPs).
The GHFPs were co-developed by the Green Finance Institute (GFI) and Loan Market Association (LMA), with the goal of providing a consistent, transparent framework for lenders to support energy efficiency and home electrification. It is hoped this will make sustainable upgrades more accessible to households.
With the support of the Greater Manchester Combined Authority (GMCA) and its mayor Andy Burnham, this local collaboration means residents across nearly every borough of Greater Manchester can access GHFP-aligned loans. This, says the GMCA, makes it the first region to offer such coverage.
“The Soundpound and their members will play an important role in modernising our built environment while cutting energy bills,” said Burnham. “As part of our mission to become carbon neutral by 2038, we’re investing in cleaner, warmer, healthier homes and creating thousands of green jobs. By aligning with the Green Home Finance Principles, our credit unions are leading the way in making greener homes a reality for more people.”
Unsecured green home loans – typically ranging from £500 to £15,000 – are tailored for projects like insulation, solar panels, and heat pumps. These short-term, affordable loans aim to help reduce the upfront cost of energy improvements, without the need for remortgaging.
The rollout began with South Manchester Credit Union’s Green Loan product, followed by Metro Moneywise, Salford, Manchester, and No1 CopperPot credit union. In partnership with local retrofit co-operative People Powered Retrofit – which gave a presentation on green improvement loans at the 2024 UK credit union conference – more Soundpound members are preparing to launch similar offers.
“As more Soundpound members introduce GHFP-aligned products, we’re building the kind of local infrastructure needed to make retrofit finance truly accessible,” said Ciara Davies, CEO of Metro Moneywise and executive lead of Soundpound. “This is about enabling people to improve their homes on their own terms, with trusted support.”
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Matt Bland, CEO of the Association of British Credit Unions (Abcul) said: “We are proud to support this landmark initiative – a clear demonstration of credit unions collaborating to deliver meaningful outcomes for their communities.
“Credit unions are uniquely placed to provide affordable, inclusive finance rooted in local values, and this work highlights their growing role in driving sustainability and social impact. It’s encouraging to see Abcul members leading the way.”
Green Finance Institute CEO Rhian-Mari Thomas added: “Credit unions are trusted, values-led, and deeply rooted in their communities. Their agility and connection to local people make them ideal first-movers in offering GHFP-aligned loans. This initiative should inspire other regions to harness community finance for climate action.”
The GHFPs, launched in 2020 by the GFI in collaboration with the LMA, are part of broader efforts to accelerate investment in decarbonising the UK’s housing stock. GFI has worked closely with Soundpound to support product development and scale, creating a model with the potential to be replicated nationally.
