Virgin Money is launching Greener Mortgages, its new mortgage offering lower rates of interest to customers buying energy efficient, new-build homes.
Greener Mortgages are designed to reward customers who buy greener, new-build homes which have an Energy Performance Certificate (EPC) or Predicated Energy Assessment (PEA) rating of A or B.
The new mortgage range is available to first and next time buyers and include Help to Buy Equity Loan options.
It features a range of two and 5-year fixed rate mortgages which come with cashback to help towards valuation costs.
The products are available at 65%, 75% and 85% loan-to-value (LTV) for standard residential mortgages and at 55% and 75% LTV for Help to Buy Equity Loan products. A £995 fee applies and the rates – which start at 1.25% – are 0.1% below the equivalent core rates.
In partnership with Carbon Neutral Britain, one of the UK’s carbon offsetting initiatives, for each Greener Mortgage sold, Virgin Money will fund sustainable energy projects around the world.
Hugh Chater, chief commercial officer at Virgin Money, said: “We want to give our customers the chance to make a greener choice in their finances. Our Greener Mortgages reward customers who choose a more energy efficient new build home with a lower interest rate, coupled with funding renewable energy and tree planting, meaning their mortgage is kind to both the environment and their wallet.”
James Poynter, director at Carbon Neutral Britain, adde: “Carbon offsetting is a simple and affordable way for people to reverse their home’s impact on the environment, given residential properties’ significant contribution to the UK’s carbon footprint.
“Virgin Money Greener Mortgage customers will know that they live in an energy efficient home and that the equivalent amount of carbon output from heating and lighting their home has been offset thanks to their chosen mortgage and our partnership. That’s why we are so proud to partner with Virgin Money on their Greener Mortgages.”