Kensington Mortgages has unveiled their eKo cashback mortgage, an offering that rewards environmental home improvements.
Kensington will pay £1,000 for improving a property’s energy efficiency evidenced on their Energy Performance Certificate (EPC).
The eKo Cashback Mortgage offers the cashback when a homeowner improves their energy efficiency within the first year of completion.
Homeowners only need to increase their energy rating by 10 SAP points, which is the equivalent of putting in solar panels or loft insulation.
The proposition is available to all individuals across all properties in the UK.
Starting from 3.04% at 75% LTV, the eKo mortgage also comes with free valuations, and free legal advice on remortgages.
Swapping to a condensing boiler earns the most “points” at 47, whilst installing double glazing and low energy lighting earns four and two points respectively.
Mark Arnold, chief executive officer at Kensington Mortgages, said: “Many people are becoming increasingly conscious of their carbon footprint and want to reduce it.
“So making energy efficiency improvements in your home is a no-brainer – you can help combat climate change and save on your bills at the same time.
“With Kensington’s new eKo mortgage you can also be rewarded in the form of cashback.
“We are particularly excited about this new product because unlike other green initiatives, the eKo cashback mortgage is targeted at efficiency improvements to pre-existing properties, rather than focussing on investment in new builds, offering the opportunity to help combat climate change to a much broader set of borrowers.”
Kevin Roberts, director at Legal & General Mortgage Club, added: “Like all industries, the housing and mortgage markets must react to the threat of climate change and the importance of reducing carbon emissions.
“Renovating existing housing stock is a crucial part of this mission and that means incentivising consumers who want to improve the energy efficiency of older homes.
“The launch of Kensington’s eKo cashback mortgage is a positive step in the right direction that will help to increase choice for consumers interested in green mortgage products.”