Foundation launches green residential remortgages | Mortgage Strategy

Img

Foundation Home Loans has launched a number of Green Reward remortgage deals for residential borrowers.

In February the lender launched similar deals for landlords.

The newly-launched products are designed to reward borrowers who have made energy-saving home improvements.

However, the lender does not stipulate what type of upgrade the borrowers must have made. 

The only requirement is that the property has an energy performance certificate (EPC) rating of C or above.

Foundation says its residential mortgage deals are aimed at borrowers who would narrowly miss out on high-street loans because of their credit score.

The Green Reward products come with a reduced fee of £595 instead of £995 on its standard remortgage deals.

They also offer cashback of £750 on completion.

  • Two-year fixed rates are priced at 3.24 per cent at 75 per cent LTV and 4.39 per cent at 85 per cent LTV.
  • Five-year fixed rates are priced at 3.59 per cent at 75 per cent LTV and 4.74 per cent at 85 per cent LTV.

Commercial director George Gee says the new products provide “a greater degree of choice for those borrowers who are not able to access high-street lenders, but who undoubtedly should be rewarded for improving the energy efficiency of their home”.

He adds: “The benefits in terms of reducing the carbon footprint and cutting down on energy bills are plain and obvious but homeowners can now benefit via their mortgage as well, and therefore this should be a further incentive to look at a property’s current EPC rating.

“When the low product fee and cashback are taken into account, these products’ total cost overall will tend to work out more advantageous for those homeowners who have secured the better EPC rating in the last 24 months.”


More From Life Style