The feature will be available to customers applying on the Just For You J2.5 LTV series to be launched on 20 July 2020. Just claimed this would be the UK’s first ‘green’ lifetime mortgage.
The move comes following the chancellor’s announcement that he is creating a £2 billion Green Homes Grant.
Rishi Sunak said in his Summer Statement last week that, under the new scheme, homeowners in England would receive up to £5,000 per household to make energy-saving improvements to their properties, with those on the lowest incomes receiving up to £10,000.
Customers qualifying for the green lifetime mortgage feature will receive a 0.1% discount on their mortgage rate and a £50 contribution to the cost of the EPC (received via cashback at completion of the advance).
Paul Turner, managing director of retail at Just Group said: “Just has a proud history of helping financial advisers and intermediaries get the best outcomes for their clients.
“We do this through continually expanding our broad range of products to make it easy for advisers to design a solution that’s right for their clients’ needs and situation; previous developments include medically underwritten and interest serviced mortgages.
“Our green lifetime mortgage offers customers with energy efficient homes the benefit of more attractive rates on their Just For You Lifetime Mortgage.
“The £2 billion Green Homes Grant announced by the Chancellor last week is designed to help thousands of homeowners make their homes more environmentally friendly and targets more financial support to those least well off.
“Homeowners who have a property with an energy rating to A or B will not only enjoy lower energy bills but now they can also benefit from a lower interest rate with our green lifetime mortgage. ”
The new J2.5 LTV tier in the Just For You suite of lifetime mortgages offers customers a greater LTV than the J2 LTV series at a lower interest rate than the J3 LTV series and has a loan to value ranging from 23% to 51.9% dependent upon customer age.
Just said it was designed to offer a competitive interest rate for the initial lump sum, whilst offering the customers the flexibility of an unused cash facility to be released when funds are required.
