Credit checks to be made a requirement for the Green Deal
Applicants will have to pass credit check to get financing for energy efficiency improvements
November 2, 2012 | post last updated on July 25th, 2016
In order to receive financing from the Green Deal homeowners will have to pass a credit history check. The Green Deal Finance Company, which will provide 80% of the funding for the scheme has announced that it will comply with guidance from the Office of Fair Trading and carry out a credit check on anyone applying for the loan.
This has led some to argue that the scheme will fail to help those who most need it as those with a poor credit history are most likely to be living in fuel poverty, with energy inefficient homes.
Pippa Read of the National Housing Federation, said: “This must not be done at the expense of very low-income and vulnerable groups that should be encouraged to access the green deal.” However Paul Davies, a senior partner at Pricewaterhouse Coopers and a member of the GDFC said that the credit check will have more relaxed criteria for getting the loan than a normal personal loan of the same value. He insisted the checks would be done “with a brain”.