"While the £150 energy bill reduction won’t fund a heat pump or solar array, it might just push thousands of homeowners to start planning ahead instead of standing still"
- Henry Vaughan - Selina Finance
Last month’s Autumn Budget brought a small but welcome lift for millions of households, with around £150 set to be shaved off energy bills early next year. After a long period of high borrowing costs, rising household expenses and uncertainty around future interest rates, even a modest saving offers much-needed breathing space.
Still, in the conversations I’m having with homeowners, it isn’t really about the £150. It’s about whether this is the right time to look at their broader financial picture, and for many families, that now feels like the right question to be asking.
Beyond the £150
On its own, the savings won’t make a dent for most families - they’re still juggling high-cost credit, postponed renovation plans and rising cost of living. What the savings can do, however, is provide a reason to pause, and it’s perhaps the perfect trigger for homeowners to reassess their wider finances and consider the longer-term decisions they’ve been putting off for too long.
What I hear from homeowners each day is consistent: they don’t just want short-term relief, they want stability, lower monthly costs and the ability to invest confidently in their homes again. Many have been stuck in a holding pattern for months, waiting for interest rates to settle before making progress on home improvements and upgrades that are actually essential. And this is where the budget, small as it is, offers a timely opportunity.
Is 2026 the year for a financial reset?
As we head into a new year, this feels like a natural moment for households to step back and ask themselves a few crucial questions: Is now the time to consolidate expensive borrowing? To move forward with home or garden projects that have been on hold? Or to invest in energy-efficient upgrades that will help protect against rising costs?
From what I see, green home upgrades belong at the top of the list. Not only do they help lower bills and make homes more comfortable, but they also add value to the property, supporting long-term financial security as well as sustainability goals. As I often say, green upgrades aren’t just good for the environment, they’re good for homeowners’ wallets too.
The concern homeowners raise with me most often is, of course, affordability. Even when they want to install solar panels, improve insulation or switch to a heat pump, accessing the right kind of finance at the right time remains a barrier. Traditional loans don’t offer much flexibility, and remortgaging usually means losing a good rate. It’s no surprise that homeowners are reluctant to take that step right now. If the UK is to see millions of homeowners make meaningful upgrades, we need innovation in the financial sector as much as the energy sector.
Introducing HELOC
In the US, Home Equity Line of Credit, or HELOC, has long helped homeowners invest in the kinds of energy-saving improvements that make a real difference to their bills and the long-term efficiency of their homes. HELOC offers a flexible line of credit secured against the equity people have built up in their homes. It allows them to borrow what they need, when they need it and only pay interest and repayments on the funds they actually draw.
What makes HELOC particularly suited to energy-efficient home improvements is its flexibility. Anyone who has renovated a property knows that costs shift, timelines change, and quotes fluctuate. A HELOC allows homeowners to respond to that, drawing down gradually as projects progress, rather than taking out one large, inflexible lump sum. And unlike remortgaging, it doesn’t require homeowners to give up their existing mortgage rate at a time when rates remain extremely unpredictable.
More and more homeowners are now using a HELOC to move forward with projects they’ve been wanting to tackle for years. For some, that means installing solar panels to bring down their monthly bills. Others are improving insulation so their homes stay warmer and more efficient through the cold winter months. Many are choosing to upgrade to heat pumps to reduce emissions and future-proof their heating, while others are finally able to finish long-overdue home or garden improvements that add real value to their property.
With almost 80% of UK homes built before 1980, these improvements are essential in making homes easier to run, more comfortable and better prepared for what’s ahead.
The new year’s resolution that pays off
While the £150 energy bill reduction won’t fund a heat pump or solar array, it might just push thousands of homeowners to start planning ahead instead of standing still. It might encourage them to ask themselves what could become possible in the coming year if they accessed the equity sitting in their home.
This is where I believe 2026 could mark a real shift, with sustainability pressure building, net-zero targets approaching and energy costs still a major concern, homeowners are more motivated than ever to take action. We say a more flexible approach to borrowing can help them do just that.
As we move towards 2026, the best commitment homeowners can make might not be about habits and hobbies, but rather about creating a greener, more affordable and resilient home. The Budget may not have brought major changes, but it did give households a moment to step back and take stock, and sometimes that’s all that’s needed to start making better, longer-term financial decisions.
If we want to help more households make their homes energy-efficient, we need financing options that make those upgrades possible. With HELOC now available in the UK, we’re already offering homeowners a more flexible way to move forward.
*A HELOC is a second charge mortgage (also known as a secured loan). Think carefully before securing other debts against your home. Your home may be repossessed if you do not keep up repayments on your mortgage or any other debt secured on it. Remember, if you consolidate your existing borrowing, you may be extending the term and increasing the amount you repay in total.
