A new green mortgage product range has been launched by The Co-operative Bank, targeting eco-friendly housing purchases.
- The range offers attractive interest rates for homes with Energy Performance Certificate (EPC) ratings of A or B.
- Customers can access mortgages with terms of two or five years and enjoy up to 95% Loan to Value (LTV).
- The initiative supports The Co-operative Bank’s commitment to reducing carbon footprints.
- This scheme complements existing environmental initiatives by the bank, enhancing sustainability efforts.
The Co-operative Bank has introduced a pioneering green mortgage product aimed at encouraging the purchase of energy-efficient homes. This initiative provides borrowers with a reduced interest rate when buying properties with an A or B Energy Performance Certificate (EPC) rating. By aligning financial incentives with environmental goals, the bank is fostering a market shift towards more sustainable living environments.
The green mortgage package offers both two and five-year fixed terms with interest rates starting as low as 4.30% for new customers of the bank. This range supports a Loan to Value (LTV) ratio from 80% to 95%, making it accessible to a wide array of potential homeowners. This flexibility reflects the bank’s strategic commitment to promoting energy-efficient housing solutions.
Furthermore, the eligibility criteria stipulate that the EPC rating must be current, within a ten-year validity. For newly constructed homes, where an EPC may not be initially available, the bank accepts Predicated Energy Assessment (PEA) or Standard Assessment Procedure (SAP) ratings from developers or vendors. This ensures that new builds can also benefit from this green initiative, aligning with sustainability standards.
New builds, however, have LTV restrictions, with houses limited to 90% and flats to 85%. This is in line with risk management practices while promoting sustainable choices. Additionally, the product is available via The Co-operative Bank for Intermediaries as well as associated mortgage brokers, enhancing its reach and accessibility.
John Ward, director of products at The Co-operative Bank, expressed enthusiasm about the bank’s green mortgage launch. He emphasised the benefits of purchasing homes with higher EPC ratings, which include reduced interest rates, lower energy costs, and a positive environmental impact. Ward stated, “By purchasing homes with higher EPC ratings, customers can access reduced interest rates, reduce their energy bills and do their bit for the planet.” Such endorsements reflect the bank’s broader environmental responsibility goals.
This new mortgage offering complements existing support avenues provided by the bank, including two energy-efficient additional borrowing products and a free energy-saving home improvement plan for existing mortgage holders. The introduction of a Sustainability Hub further guides customers in making sustainable choices, reinforcing the bank’s role as a leader in environmentally conscious banking solutions.
The Co-operative Bank’s green mortgage initiative represents a significant step in promoting sustainable housing and environmental responsibility.
