Barclays Mortgages is launching a Green Home Mortgage which, it says, will reward homebuyers who chose to buy an energy efficient new build home with lower interest rates on their mortgage.
The bank said this responds directly to the Government’s Green Finance Taskforce recommendation to support Clean Growth in the mortgage market.
Following the success of the recent €500 million Barclays Green Bond, Barclays Mortgages will offer the preferential interest rates on 2 and 5-year fixed rate mortgages up to 90% loan-to-value (LTV) and Help To Buy mortgages up to 75% LTV.
With 10 basis points discounts off the equivalent traditional Barclays Mortgage products, home movers purchasing a new build property could achieve a saving of £750 on a typical mortgage of £150,000 over the five-year fixed rate term. Combined with the reduced energy bills an energy efficient new build home can provide, savings of up to £1,335 could be reached.
Initially available to customers buying new-build properties from selected partner house-builder, Barclays Green Home Mortgage suite will be expanded to additional house-builders and homebuying scenarios during 2018, so that more customers can benefit from this innovative green mortgage.
Hannah Bernard, Head of Barclays Mortgages, said: “We’re proud to be the first major UK mortgage lender to offer a product that helps home buyers in their decision to purchase a Green new-build home.
“On top of this, we are committed to expanding the Barclays Green Home Mortgage suite so that it is available to a wide range of customers and property types by 2019.”