Buyers of new-build homes might want to look to Barclays for a mortgage deal following their announcement of a new “green” mortgage.
Set to launch next week, this exciting new mortgage product will reward buyers of new-build, energy efficient homes with access to lower interest rates.
The green mortgage is open to people with deposits starting at 10%, and on Help to Buymortgages for those with a 25% deposit or more. Homeowners will benefit from preferential interest rates on two- and five-year fixed rate mortgages, with a 0.1% discount compared to Barclays standard products.
Rewarding customers for a low-carbon sustainable lifestyle
“Given Barclays’ commitment to supporting our customers’ transition to a low-carbon and sustainable lifestyle, we have compelling reasons to launch this pioneering product. We’re looking forward to expanding our offer to more customers and through more housebuilders later this year,” said Hannah Bernard, head of Barclays Mortgages.
82% of new-build homes built last year are eligible
Currently, borrowers buying new homes from a group of five partner housebuilders, with an Energy Performance Certification (EPC) rating of A or B, are eligible for the new green mortgage. Given that 82% of new-build homes completed last year had an EPC rating of A or B, this means a significant number of new properties qualify for the new green mortgage.
The current partner housebuilders are Barratt Homes, Berkeley Group, Countryside Properties, Crest Nicholson and Redrow Homes, and Barclays aims to roll out the new mortgage to all major UK housebuilders by the end of this year.
Government’s Green Finance Task Force driving the green mortgage market
Only last week, the government issued policy suggestions to drive green investment in the UK. It is believed that the development of the UK’s green mortgage market will help to “mainstream” the environmental factors in the house buying process.
For environmentally conscious customers, for the first time Barclays is offering a real alternative to the average high street lender and encouraging others to consider the environmental factors in buying a home. With the average saving on a typical £150,000 mortgage for top-EPC rated mortgages estimated to be £750 over five years, a financial reward for “going green” is certainly worth considering.