Tomorrow's homes are here today
We’re the first major lender to support Octopus Zero Bills homes, by removing monthly energy bills from our affordability assessment. Helping your clients into new homes that have lower running costs and remove the worry of rising energy bills.
A Zero Bills home combines solar PV, battery storage, and a heat pump. Each Zero Bills home produces its own power, making the home energy self-sufficient, when connected to Octopus’ Zero Bills world-first smart energy tariff. Octopus guarantees the new build home will have no energy bills for at least 10 years.
The Octopus Zero Bills effect
If your client applies for a mortgage on a Zero Bills new build and doesn’t pass standard affordability, our underwriters have the flexibility to remove monthly energy bills from our affordability calculation, boosting the maximum amount your client can borrow.
The flexibility to remove energy bills from our affordability calculation could increase your client’s disposable income, enabling us to approve a case that would otherwise be declined.
How to find out if your client’s home is a Zero Bills home
You can check by entering the property’s postcode into the Octopus Zero Bills Register.
A borrowing game changer, for game-changing homes
Your clients could unlock up to £29k more borrowing when buying an Octopus Zero Bills new build home, using our bespoke affordability assessment.
Here’s what this looks like for different property sizes and mortgage terms.
| Property size | 25-year term | 30-year term | 35-year term | 40-year term |
|---|---|---|---|---|
| 1 bedroom | +£10.9k | +£11.7k | +£12.3k | +£12.7k |
| 2 bedrooms | +£12.6k | +£13.6k | +£14.2k | +£14.7k |
| 3 bedrooms | +£13.7k | +£14.7k | +£15.4k | +£16k |
| 4 bedrooms | +£18k | +£19.3k | +£20.3k | +£21k |
| 5+ bedrooms | +£25k | +£26.9k | +£28.2k | +£29.3k |
Figures are for illustrative purposes only and are based on a representative customer scenario on a mortgage with a fixed-rate period of 5 years or longer. Actual borrowing amounts will depend on individual circumstances, property type, loan to income limits, lending policy, underwriting assessment, and product eligibility. Additional borrowing is not guaranteed.
Here's how it works
If the case passes on standard affordability, enhanced affordability isn’t required.
The case will progress as normal.
Follow these steps
- Reach out to our New Build Team to let us know your client is looking to buy an Octopus Zero Bills home, and the case should be considered for enhanced affordability.
- They'll pass the case to an underwriter.
- The underwriter will remove energy costs from the affordability calculation.
- If the case passes affordability, the underwriter will accept the case. If not, then a maximum available loan will be offered.
Our New Build Team is here to help you
Please get in touch if:
- your client’s case is declined on standard affordability, and the property is an Octopus Zero Bills home
- your client’s case passes standard affordability, but a maximum loan is offered, and the property is an Octopus Zero Bills home
- the property or builder changes during the application.
Our 10-year fixed rates provide added security that match the term of the Zero Bills new builds guarantee
We’re expanding our new build product range. In addition to the current 2-year and 5-year fixed rates, we’re introducing new 10-year fixed rates. They provide certainty of mortgage payments that match the 10-year no energy bills guarantee – giving your clients peace of mind over two of their biggest household outgoings.