Newbury Building Society has introduced a ‘GoGreen Reward’ incentive on its self-build mortgage products.
According to the lender, this decision is designed to encourage homebuilders to make conscious sustainable choices.
The reward is applicable on the 75% LTV self-build three year discount at 3.95%.
The society is encouraging borrowers to combat climate change by implementing sustainable, energy-efficient features into the build of their home.
By doing so, it will refund half of the application fee paid at the start of the mortgage if an Energy Performance Certificate (EPC) of A or B can be evidenced within two years of the start of the self-build project.
The self-build minimum loan amount is £50,000, mortgage overpayments are accepted, and the product is postcode restricted.
Once the build has been completed, the borrower is able to transfer to a standard residential mortgage.
All self-build applications will be assessed on individual merit with tailored underwriting and no credit scoring.
Roger Knight, lending manager at Newbury Building Society, said: “We’re excited to further expand our green mortgage offering into the self-build sector.
“The UK currently has ambitious carbon targets to reduce emissions by 80% by 2050.
“One of the most cost-effective ways of doing this is by lessening – or by cleaning up – the energy homeowners currently use in their properties.
“We believe the GoGreen Reward on our self-build mortgage, and our promise to refund half the application paid if a positive EPC rating can be proven, will encourage people to make their homes more energy-efficient.”