Barclays has introduced a range of new ‘green’ mortgages, offering cheaper rates to homebuyers who purchase an energy-efficient new-build home. The deals are available to first-time buyers and home movers, and special products are available for those using the Help to Buy scheme. Here, we explain how the new deals work and investigate whether they offer the best mortgage rates out there. If you’re buying a home and would like personal advice on the best mortgage deal for your circumstances, call Which?
Mortgage Advisers on 0800 2942 849. How much could you save on your mortgage by going green? Barclays’ new green mortgages are available as two- and five-year fixed-rate deals, and offer a 0.1% discount on standard Barclays products. Barclays claims that this means a saving of £750 on a £150,000 loan over a five-year fixed-rate period. On top of this, the lender cites Carbon Trust data showing that someone living in a three-bedroom home with an EPC rating of B would spend £585 less on energy bills than if they lived in an equivalent E-rated property – meaning a total potential total saving of £1,335.
Barclays green mortgage eligibility To be eligible for a green mortgage, you’ll need to purchase a new-build home with a predicted Energy Performance Certificate (EPC) rating of A or B. As it’s impossible to provide an EPC rating for a property that hasn’t yet been built, the housebuilders will instead provide a Predicted Energy Assessment (PEA) before the home is built. If you buy a property through one of the five developers partnered with Barclays, they will provide the PEA to the lender, who will use this to confirm your mortgage agreement.
You’ll also need a minimum deposit of 10% – or a Help to Buy mortgage at 75% loan-to-value. The offer is initially only open to those who purchase from five housebuilders – Barratt, Berkeley, Countryside, Crest Nicholson and Redrow – though Barclays says it intends to partner with other major housebuilders by the end of 2018.