Minister urges borrowers to take out secured loans

Environment minister Phil Woolas has told the Lancashire Evening Post that home owners should borrow against their homes in order to pay for wall and loft insulation.

The comments came as prime minister Gordon Brown unleashed a £910m package to help borrowers cope with increasing energy prices.

Woolas is reported as saying: “People who want to invest in their homes have got an asset to borrow against.

“Loft insulations are expected to save homeowners up to £250 a year, which means the speedy repayment of any loan.

“The difficulty with the credit crunch is you can only get 75% of a mortgage.

“If you are an existing householder it is easier to borrow against this energy efficiency initiative because the pay-back period is so good.”