Leeds Building Society will reward homeowners for energy efficiency with the launch of a new green mortgage product.

The new mortgage product factors in a property’s Energy Performance Certificate (EPC) rating to offer preferential rates for the most energy-efficient homes.

Benefitting mortgage applicants for EPC A-C rated homes, the improved rate recognises the savings the most energy-efficient new build homes bring.

The mortgage will be available up to 90% loan-to-value (LTV), at a fixed rate of 6.34%.

Leeds Building Society’s senior mortgage manager, Jonathan Thompson says: “Ensuring we are building a greener planet is at the heart of our purpose, putting home ownership within reach of more people, generation after generation.

“As a responsible business we are committed to the orderly transition to a greener, net zero economy by 2050.

“We have reduced our carbon footprint in recent years, and we hope this new mortgage product will support our members to do so too by rewarding those choosing to live in the most environmentally friendly homes.”

The Green two-year fixed rate mortgage is available at 6.34% on residential property purchases with an EPC rating between A-C.

It comes with no application or completion fee and free standard valuation, up to 90% loan-to-value (LTV).

In addition, 10% penalty free capital over repayment allowed each year.