April, 2018
Buyers who choose to purchase a home with a high energy efficiency rating will now have access to a new mortgage product recently launched by Barclays.
The new mortgage is available now and offers homeowners an incentive to “transition to a low-carbon and sustainable lifestyle”.
Those who opt for a home that has achieved an A or B EPC Energy Efficiency Rating, are now rewarded with the option of choosing a two or five-year, fixed, low-interest rate deal with up to 90% loan-to-value (LTV).
Homeowners that take up this new deal will also receive 10 basis points off Barclays’s mortgage products, with Barclays stating that this could save buyers up to £750 over the course of five years on a £150,000 mortgage.
This deal is currently only available to those who purchase a new-build home through five of Barclays's development partners, but long-term they hope to have a partnership with all major UK developers before the end of 2018.
Head of Mortgages at Barclays, Hannah Bernard, commented on their new product, suggesting it’s just the beginning for their line of green mortgages.
“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.” Bernard said.
According to reports, 80% of new homes built in 2017 managed to achieve an A or B EPC Energy Efficiency Rating and there is clear momentum for the UK's property industry to “go green”.
This month, there were new rules introduced for landlords to meet specific energy efficiency standards. There was also a recent open letter to the government from 50 major business leaders within the property and construction industry to create a policy with the target of net-zero carbon for new buildings by 2030.
We could see more banks get behind this initiative and provide buyers with rewards and incentives to “go green”, so this may be worth considering if you’re a homeowner or an investor.
