HSBC UK will launch a cashback mortgage linked to energy efficient homes, while Barclays is set to cut selected residential rates by as much 25 basis points.
HSBC says its energy efficient homes cashback deal, provides a £500 cashback for purchasing or remortgaging for a home that has an energy performance certificate rating of A or B, where a residential mortgage is being taken through a broker. The product launches tomorrow.
The firm’s £500 cashback is in addition to any other cashback the customer’s chosen product has, which could lead to a total cashback of up to £1,500 for first time buyers purchasing a home with an energy performance certificate A or B rating.
The lender says mortgage rates start at 4.28% – at 60% loan to value, with a five-year fix and a £999 fee. It adds that this rate is the same as the standard range, with the only difference being the £500 cashback.
HSBC UK head of mortgages Oli O’Donoghue says: “An energy performance certificate provides important information to consider when buying a home, making it easy to see at a glance which homes are the most energy efficient, and what work needs to be done to improve the home’s energy efficiency.
“There are tangible financial benefits to choosing an energy-efficient home, including significantly reduced energy bills over the short, medium and longer term versus homes at the lower end of the EPC scale.
“At a time when the cost of living continues to escalate, buying a more energy-efficient home can potentially help save money and build or reinforce the financial resilience of the homeowner.”
Meanwhile, Barclays will cut rates on a modest selection of residential purchase and remortgage products by as much as 25bps from tomorrow.
Among its highlights, the lender says a Great Escape two-year remortgage fix, with no product fee, at 75% LTV, falls by 25bps to 4.95%.
And a Premier five-year purchase fix, with a £699 product fee, at 60% LTV, falls by 8bps to 4.16%.
John Charcol head of marketing Nicholas Mendes says: “It doesn’t look like Barclays are going to end the month with any major repricing for March to note, the last was on the fourth of the month, which again only featured a small change in pricing.
“It will be interesting to see whether lenders are holding back any significant repricing until after the Easter break, to ensure service levels and swaps remain settled before showing their hand.”
