Virgin Money has launched a new mortgage with lower rates of interest to customers buying energy-efficient, new-build homes.
The firm says its Greener Mortgages are for borrowers who buy new homes, which have an energy performance certificate or predicated energy assessment rating of A or B.
The range is open to first and next time buyers and includes Help to Buy equity loan options.
The product features a range of two and five-year fixed-rate mortgages, which come with cashback to help towards valuation costs.
New build purchase mortgages rates include:
An 85% loan-to-value two and five-year fixed rates, starting from 2.33%.
A 75% LTV two and five-year fixed rates, starting from 1.44%.
And a 65% LTV two and five-year fixed rates, starting from 1.25%.
The Help to Buy equity loan rates are:
A 75% LTV two and five-year fixed rates, starting from 2.00%
And a 55% LTV two and five-year fixed rates, starting from 2.00%.
A £995 fee applies to the above products and their rates are 0.1% below the equivalent core rate.
Other highlights in the range include a core buy to let five-year fixed rate product at 75% LTV, with a £1,995 fee, reduced by 0.05% to 2.04%.
A portfolio BTL five-year fixed rate at 75% LTV, with a £995 fee, reduced by 0.05% to 2.19%.
And BTL product transfer five-year fixed rate at 75% LTV, with a £995 fee, reduced by 0.05% to 2.09%.
Around 15% of the UK’s total carbon emissions come directly from residential homes, according to a report from the Department for Business, Energy and Industrial Strategy that was updated in February.
The lender adds that in a survey of more than 1,000 of its customers this month, 34% of them said they think more about their environmental impact since the pandemic began.
Virgin Money, together with lobby group Caron Neutral Britain, says it will fund sustainable energy projects around the world such as reforestation, hydro and solar to offset five tonnes of carbon emissions. It also pledges to plant 100,000 trees from the sale of Greener Mortgages.
Virgin Money chief commercial officer Hugh Chater said: “Our Greener Mortgages reward customers who choose a more energy-efficient new build home with a lower interest rate, coupled with funding renewable energy and tree planting, meaning their mortgage is kind to both the environment and their wallet.”
