The mortgage is aimed at people planning to move to an older or period property. It’s also for those who need a remortgage or upgrade on their existing home.

The ‘green’ mortgage offers the borrower a rate relief for the remainder of the fixed rate period, when the works undertaken on the property produce a one-step rise in the EPC rating – as long as this is above an E.

It comes in the month the government is launching its Green Homes initiative. The scheme will offer up to £5,000 towards essential upgrades to the home, which will include loft and cavity wall insulation, glazing upgrades and installation of solar panels.

Saffron said, while not all homes would qualify, with the push to upgrade current housing stock and the emphasis on energy efficiency, the retro-fit mortgage could be an additional benefit to the borrowers.

Laura Bright, senior product manager and developer of the green products comments: “The retro-fit product is designed to offer the borrower a reward for works they will undertake on their new property.

“The works will benefit the homeowner, they will not only save up to £500 per year on their energy bills, but their mortgage rate will reduce for the remainder of the fixed term if they are able to improve their EPC by one step, in the first six months.

“With government offering help, and some small steps, they could be on target in no time in their newly purchased or remortgaged home.”