The Retrofit Boost mortgage offers customers up to £15,000 cashback to make their home more energy efficient.
The new products are available to both residential and buy-to-let customers via intermediaries.
Customers taking out a five-year fixed mortgage can secure up to £3,000 cashback, while a seven-year fixed mortgage comes with £10,000 cashback, and a 10-year fixed rate mortgage is offered with £15,000 cashback.
The Retrofit Boost five-year fixed rate is priced at 4.99% at 75% loan-to-value or 5.04% at 85% loan-to-value. The seven-year fixed rate is available at 85% loan-to-value at a rate of 5.74%. The 10-year fixed rate is available at 85% loan-to-value at a rate of 5.84%.
All the Retrofit Boost mortgages have a £995 fee. The minimum loan size is £150,000, and the product will be available for loans up to £500,000.
Borrowers taking out the deal can access a range of services from Hive to help make their home more energy efficient, including the option of checking their eligibility for additional grants. However, customers are also free to spend their cashback on energy-saving improvements with other suppliers.
According to data from the Office of National Statistics, the average house Energy Performance Certificate rating in the UK is band D, highlighting the need for home energy efficiency improvement, where band A is the gold standard.
Richard Merrett, managing director at Alexander Hall and chair of The Green Mortgage Advice Initiative, said: “Virgin Money’s new Retrofit Boost product is a breath of fresh air for homeowners and landlords. The crucial difference in their launch is in giving a ‘what next’ option for consumers, the inclusion of Hive, a trusted brand offering expert advice on energy-efficient solutions, simplifies the journey for clients by providing the ability to research and coordinate the retrofit process.”
Craig Calder, head of secured lending at Virgin Money, said: “At Virgin Money, we recognise the increasing desire among customers to create more efficient living spaces. However, traditional financing options for home efficiency upgrades can be restrictive. The Retrofit Boost Mortgage is designed to dismantle these barriers.
“By providing cashback specifically for efficiency improvements, this mortgage product removes a significant financial obstacle. The incentive empowers customers to invest in a more comfortable, sustainable and potentially cost-effective living environment.”
