Tandem has launched a new green product feature that will provide customers with a green discount on new second charge mortgages, operated under its Oplo brand.

The new discount will provide a rate reduction of up to 0.5% for new customers with an energy performance certificate (EPC) rating of A, B or C.

A 0.5% discount rate for new customers will be applied to those with an EPC rating of A. There will also be a 0.30% discount rate for customers with an EPC rating of B and a 0.20% discount rate for customers with an EPC rating of C.

The UK government has estimated that on average every home in the UK will have to reduce 3.6 tonnes of carbon emissions by 2030 to keep us on track for hitting 2050 net zero targets.

Tandem has launched the new green product as it believes banks can play a big part in supporting consumers to reduce their home’s carbon footprint.

The bank also plans to launch Greener in Tandem, a series of initiatives and information to support customers understand their home’s current emissions, as well as what, where and how they can help reduce it.

Tandem mortgage managing director Steve Beard comments: “Today’s launch is an exciting and important first step, and we hope to see customers doing more to improve their home’s EPC rating. This is the first step in our planned improvements for greener mortgages – we’ve lots more to do as we continue our mission to become the UK’s fairer, greener digital bank.”