Nationwide has cut the rates on its green additional borrowing products across all LTVs to 0.75 per cent.

This means reductions that range from 40 basis points to 180 basis points – specifically, the 60 per cent LTV rate has been taken from 1.15 per cent and the 85 per cent LTV rate has been reduced from 2.55 per cent to give the headline rate of 0.75 per cent.

The loans are designed for existing customers who plan to use at least half of the borrowing amount to fund sustainable home improvements, such as solar panels and electric car charging ports.

They are available from between £5,000 and £25,000 and charge no product fee.

The additional borrowing products will available through mortgage brokers “in the coming weeks,” the lender adds.

Nationwide director of mortgages Henry Jordan says: “We know more needs to be done to help people green their homes, especially as buildings are the second largest source of emissions in the UK.

“We hope by making significant cuts to the rate on green additional borrowing, we are giving our members real impetus to make their existing homes greener, while ensuring we continue to play our part in tackling climate change.”