NatWest has launched a green remortgage product that offers a preferential interest rate to new or existing customers who are looking to remortgage an energy-efficient property.
The product offers a discounted interest rate to customers remortgaging a property with an Energy Efficiency Rating of A or B.
Through NatWest and Royal Bank of Scotland, this will be available through direct channels including in branch, over the phone and via the website.
Every home must have an Energy Performance Certificate (EPC) when it is built, sold or rented – this gives the property an energy efficiency rating from A or 100 (most efficient) to G or 0 (least efficient) and is valid for 10 years.
The new offering will be available at max 85% loan-to-value (LTV) and will apply to residential homes up to a maximum value of £600,000.
Products available will be 2- and 5-year fixed rates with no product fee and will be available to both first-time buyers and home movers across the UK.
The new product supports the bank’s pledge to help customers become more energy efficient with an ambition that 50% of the bank’s mortgage book is at or above EPC C or equivalent rating of C by 2030.
Miguel Sard, managing director of home buying and ownership at NatWest Group said: “We were one of the first lenders to bring our Green mortgage to market last year and have seen a lot of success in rewarding customers for making greener decisions. We experienced increasing customer demand for a green re-mortgage product and we’re happy to respond to this.
“One of the core parts of our purpose as a bank is to help address the climate challenge and as the principal banking sponsor supporting COP26 in Glasgow later this year, we want to act as a catalyst in supporting the reduction of the carbon footprint from UK residential properties.”