Barclays Mortgages has announced the launch of the Barclays Green Home Mortgage, available to customers from next week.
The Barclays Green Home Mortgage will reward homebuyers who choose to buy an energy efficient new build home with lower interest rates on their mortgage and is a response to the government’s Green Finance Taskforce recommendation to support clean growth in the mortgage market.
The Barclays Green Home Mortgage will be available to anyone that purchases an A or B EPC Energy Efficiency Rated new build home from an initial group of five Barclays partner house builders, with plans to partner with all major UK house builders by the end of year.
The partner house builders are Barratt Homes; Berkeley Group; Countryside Properties; Crest Nicholson and Redrow Homes.
Following the success of the recent €500m Barclays Green Bond, which was the first to be issued by a UK bank and backed solely by UK assets, Barclays Mortgages will offer the preferential interest rates on two and five-year fixed rate mortgages up to 90% loan to value (LTV) and Help To Buy mortgages up to 75% LTV.
With 10 basis points discounts off the equivalent traditional Barclays Mortgage products, home movers purchasing a new build property could achieve a saving of £750 on a typical mortgage of £150,000 over the five-year fixed rate term. Combined with the reduced energy bills an energy efficient new build home can provide, savings of up to £1,550 could be reached, Barclays claims.
Initially available to customers buying new-build properties from selected partner house-builder, Barclays Green Home Mortgage suite will be expanded to additional house-builders and homebuying scenarios during 2018.
Hannah Bernard, head of Barclays Mortgages, said: “We are increasingly hearing from our mortgage customers that they’re interested in purchasing an energy efficient home. Given Barclays commitment to supporting our customers’ transition to a low-carbon and sustainable lifestyle, we have compelling reasons to launch this pioneering product. We’re looking forward to expanding our offer to more customers and through more house-builders later this year.
“We’re proud to be the first major UK mortgage lender to offer a product that helps home buyers in their decision to purchase a green new-build home. On top of this, we are committed to expanding the Barclays Green Home Mortgage suite so that it is available to a wide range of customers and property types by 2019.”