It is set to launch two new cashback mortgages which are for borrowers whose homes are classified in the top three tiers – A to C – on the energy performance scale.
The new mortgages, which offer customers £500 cashback on completion and have rates starting at 2.33% for a borrowers with a 10% deposit, are only available through intermediaries or brokers. However, they are part of an expanding group of deals hitting the market which are offering customers with incentives to boost their home’s energy efficiency.
When a new home is built, sold or rented an Energy Performance Certificate (EPC) is required. It assesses how energy efficient the property is on a scale of A to G – A being the most efficient.
Matt Bartle, director of products for Leeds, said: “As well as being the right thing to do for the planet, ensuring your home is as energy efficient as possible can save money longer term and we’re looking at more ways to share our knowledge and support our members as they look to reduce their environmental impact.”
NatWest last week announced it was launching a green remortgage product which offers preferential rates to new or existing customers who were looking for a new deal for an energy efficient property.
The discounted interest rate is available for those whose EPC rating is at A or B. It’s available directly through NatWest.
The lender said the new product supported the bank’s pledge to help customers become more energy efficient with an ambition that 50% of the bank’s mortgage book would be at or above EPC C or equivalent rating of C by 2030.
Miguel Sard, MD of home buying and ownership at NatWest Group said: “We were one of the first lenders to bring our Green mortgage to market last year and have seen a lot of success in rewarding customers for making greener decisions.
“We experienced increasing customer demand for a green re-mortgage product and we’re happy to respond to this.
“One of the core parts of our purpose as a bank is to help address the climate challenge and as the principal banking sponsor supporting COP26 in Glasgow later this year, we want to act as a catalyst in supporting the reduction of the carbon footprint from UK residential properties.”
For more information about green mortgage options you can speak to a broker or adviser with access to as much of the market as possible.
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