New ‘Green Mortgage’ to incentivise energy-conscious homeowners
A new Green Mortgage product is being developed by energy giant Eon in partnership with BNP Paribas Personal Finances.
In support of the Government’s Clean Growth Strategy which aims to bring as many homes as possible up to Energy Performance Certificate band C by 2035, the new Green Mortgage product will reward borrowers for improving the energy efficiency of their homes. Currently, around 19 million (71%) UK households fall below the band C rating.
Homeowners, including first-time buyers, home movers and remortgagers will be able to borrow further against their mortgage with a linked ‘energy efficiency home improvement loan’. The use of this loan to improve their homes energy efficiency using the Eon managed service could result in a discounted mortgage rate.
Homeowners will benefit from energy and mortgage savings
The development of a Green Mortgage product is an attempt by Eon and BNP Paribas Personal Finances to help homeowners improve the energy efficiency of their homes, by removing the financial barrier for such improvements. The incentive of a reduced rate mortgage means customers could benefit from up to £380 per year on energy savings and make savings on their monthly mortgage repayments.
While buyers of new build homes have been able to take advantage of green mortgages for some time, an affordable source of finance and the possibility of a discounted mortgage rate could be the incentive existing homeowners need to act on the energy performance of their homes.
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