Greater Manchester Combined Authority’s Credit Unions become first in UK to align with Green Home Finance Principles
by | June 4, 2025
Co-developed by the Green Finance Institute and the Loan Market Association (LMA), the Green Home Finance Principles (GHFPs) support the rollout of green home finance, broadening homeowner access to financing for electrification of homes.
Manchester, 4 June 2025 – In a UK first, five credit unions, members of the Soundpound Group (a co-operative of 14 credit unions in Greater Manchester) are now offering unsecured green home loans aligned with the Green Home Finance Principles (GHFPs) – a framework that recognises the use of finance to support home electrification and energy efficiency, while promoting transparency and integrity in the market.
Announced today with support from Andy Burnham, Mayor of the Greater Manchester Combined Authority (GMCA), this milestone marks significant progress towards making green home upgrades accessible through trusted, community finance. With the support of the Green Finance Institute (GFI) and the Soundpound Group, this local alignment will make Greater Manchester the first city region in the UK where residents in nearly every borough can access GHFP-aligned credit union finance – a first-of-its-kind show of leadership helping households improve the energy efficiency of their homes.
“The Soundpound and their members will be playing an important role in modernising our built environment to support the local economy while cutting energy bills,” said Burnham. “As part of our mission to become carbon neutral by 2038, we’re investing in cleaner, warmer and heathier buildings, modernising homes, public spaces, and workplaces while creating thousands of new green jobs across Greater Manchester. By aligning with the Green Home Finance Principles, co-developed by the GFI and LMA, our credit unions are creating a greenprint, leading the way and fulfilling a critical function in making greener homes a reality for more people.”
An unsecured green home loan is a specialised form of consumer finance tailored to help homeowners fund energy efficiency and green home improvements. Offered by lenders of all sizes, from banks to credit unions, these smaller loans typically range from £500 to £15,000 and are repaid over shorter terms than mortgage finance, usually around 5 years. The shorter borrowing period can reduce the total cost of finance, making it well-suited to projects like installing insulation, solar panels, or a heat pump.
South Manchester Credit Union was the first to launch a GHFP-aligned product with their Green Loan. Now, with Metro Moneywise, Salford Credit Union, Manchester Credit Union, and No1 CopperPot aligned to the GHFPs and working with local retrofit co-operative People Powered Retrofit, and more of the Soundpound group preparing to offer similar products, this model is poised to scale across Greater Manchester.
“As more Soundpound group members offer unsecured green home loans aligned with the Green Home Finance Principles, we are building the kind of local coverage that makes fair, affordable retrofit finance truly accessible. With the support of the GFI’s Green Home Finance Principles, Soundpound members are helping to set a transparent, integrity-driven example for the market.” said Ciara Davies, CEO of Metro Moneywise and Executive Lead of the Soundpound. “This is about offering people in the GMCA community-level support, helping them modernise their own homes, on their own terms.”
“GMCA’s credit unions are community-rooted, values-driven, and trusted by the people they serve,” added Rhian-Mari Thomas, Chief Executive Officer at the GFI, who brought the credit unions together under the GHFP umbrella. “Credit unions are uniquely placed to innovate faster than other lenders, which makes them the perfect first-mover for GHFP-aligned unsecured green loans. GMCA’s local leadership should inspire other regions to harness the power of community to mobilise capital into homes to finance a healthier, affordable and resilient built environment.”
Launched in 2020 by the Green Finance Institute, the GHFPs provide a transparent, consistent framework for how lenders allocate finance to retrofit the UK’s homes. Developed in collaboration with the Loan Market Association, the principles form part of the Institute’s wider work to accelerate capital into the decarbonisation of buildings.
The GFI has worked closely with the Soundpound in Greater Manchester to support product development and scale, and alignment to these principles. This collaboration is expected to serve as a national example for other regions, helping to mobilise further capital and consumer trust in the retrofit finance market.
