The mortgage, for customers committed to improving the energy efficiency of their property, comes following the chancellor’s announcement of a £2 billion Green Homes Grant scheme.

It will reward existing borrowers who want to take additional borrowing to fund energy efficient home improvements with a lower interest rate.

Karen Smith, sales manager at Newbury Building Society said: “More of us are becoming increasingly aware of our impact on the environment and are seeking ways to reduce our carbon footprint.

“One way of doing this is to encourage homeowners to make energy efficient changes to pre-existing homes, not just new builds investments.

“Our GoGreen further advance incentivises existing borrowers to improve their EPC to help combat climate change.”

Product details are as follows:

• GoGreen further advance 5-year discount at 1.49% – up to and including 60% LTV
• GoGreen further advance 5-year discount at 1.59% – up to and including 75% LTV

The green further advance minimum and maximum loan amounts are from £2,500 to £39,999.

To qualify for the further advance, borrowers must use at least 50% of the funds for one or more environmentally friendly home improvements such as insulation, double glazing and solar panels, amongst others.