Leeds Building Society is launching its first green mortgage deals, rewarding borrowers with energy efficient homes.

The lender was among the first to join the Green Finance Institute’s (GFI’s) Coalition for the Energy Efficiency of Buildings.

The two new cashback mortgages launching on Friday are designed in line with the Institute’s green home finance principles.

The deals will be available for the purchase of homes with an energy efficiency rating of A-C.

Leeds will be offering a two-year fixed rate at 1.9% up to 85% and a two-year fixed at 2.33% available up to 90% LTV, both of which have a £999 fee.

Each comes with £500 cashback on completion and a free standard valuation.

Initially the deals will be available only through intermediaries. 

Leeds Building Society director of products Matt Bartle says: “I’m proud we’re able to demonstrate our values by making a direct link between our products and positive environmental action.

“The Society is making good progress against the challenging targets we’ve set ourselves to reduce our own carbon footprint, helped by our move to a new head office we refurbished to upgrade its energy performance certificate rating from D to A.

“As well as being the right thing to do for the planet, ensuring your home is as energy efficient as possible can save money longer term and we’re looking at more ways to share our knowledge and support our members as they look to reduce their environmental impact.

GFI director Emma Harvey says: “We are delighted to see Leeds Building Society supporting the growth of the green mortgage market with these new products, which tap into increasing consumer awareness of the need to decarbonise our homes.”