Barclays launches ‘green’ mortgage
The lender has launched a new build mortgage with lower rates for energy efficient homes
Barclays is to launch a green home mortgage which rewards borrowers who want to buy an energy efficient new-build home with a lower interest rate.
The mortgage will be available to borrowers from next week when they purchase a new-build home with an A or B Energy Performance Certificate (EPC) rating.
The property must be bought from one of five partner housebuilders: Barratt Homes, Berkeley Group, Countryside Properties, Crest Nicholson and Redrow Homes.
However, the lender says it plans to partner with all major housebuilders for the mortgage by the end of the year.
How does it work?
Borrowers will be offered a discount of 10 percentage points off the equivalent traditional Barclays mortgages on two- and five-year fixed rates at up to 90% loan-to-value (LTV), as well as Help to Buy mortgages at up to 75% LTV.
Hannah Bernard, head of Barclays Mortgages, said the lender had increasingly heard from borrowers that they wanted to purchase an energy efficient home.
She said: “We’re proud to be the first major UK mortgage lender to offer a product that helps home buyers in their decision to purchase a green new-build home. On top of this, we are committed to expanding the Barclays green home mortgage suite so that it is available to a wide range of customers and property types by 2019.”
Claire Perry, energy and clean growth minister, said the government was keen to support the development of green mortgage products.
She added: “As well as the prospect of an exciting new energy efficient home for consumers, the launch of Barclays Green Home Mortgage, a major UK financial institution, is exactly the kind of progress I want to see more of as we consider the recommendations of the government commissioned Green Finance Taskforce.”