Foundation Home Loans (FHL) will now pay £500 cashback on completion of one of its green mortgages.

The cashback replaces the previous free valuation, and has been made available across all FHL credit tiers (F1-F4) for the first time.

The lender said this was an expansion of its green mortgage strategy, extending support for energy-efficient homes to borrowers including those with less-than-perfect credit histories.

The lender’s green mortgages are available on properties which have an A-C Energy Performance Certificate (EPC) rating.

FHL has also cut rates by up to 20bps on its F1–F4 core, remortgage, EPC saver, joint borrower sole proprietor, professionals and key worker homeloans.

Highlights include F1 remortgage loans cut by up to 15bps, starting from 5.49% with a £595 fee, as well as F1 EPC saver products being cut by up to 20bps, with rates from 5.64%, a £995 fee and £1,000 cashback.

FHL has also launched new green mortgages for F1 and F2, including a two-year fix at 5.29% up to 65% LTV.

Similarly, the lender has brought out green products for F3 and F4 at 75% LTV, with rates from 5.89% and 6.19% respectively, and a £595 fee and £500 cashback.

FHL director of product Tom Jacob said: “These changes reflect both a desire to support brokers through the remainder of the year and a recognition of how the market is evolving, with growing demand for products that can adapt to more diverse borrower circumstances.

“The extension of our green range to cover all credit tiers is a key milestone for Foundation Home Loans.

“We know brokers are looking for options that combine competitive pricing with long-term value, and this refresh reinforces our focus on delivering precisely that – a sustainable, specialist, and consistent offering across the residential market.”

Around a quarter of lenders believe all mortgages will be green one day, according to research from Mortgage Advice Bureau earlier this year.