Barclays has updated its lending policies for green home mortgages and bonuses.
The changes are as follows:
Green Mortgages
Barclays Mortgages have expanded availability of green home mortgages to include any newly built property purchased directly from the builder or developer with an energy efficiency rating of 81 or higher, or an energy efficiency band A or B.
The bank says the move will allow more customers to benefit from a reduced interest rate on an energy efficient home.
Mortgage applicants will need to provide the one of the following as part of their mortgage application to benefit from a more attractive interest rate:
- For fully built properties, a valid Energy Performance Certificate (EPC)
- A valid Predicted Energy Assessment certificate if the property remains under construction
Bonus Policy
The proportion of quarterly or annual bonuses that will be considered as part of an affordability assessment is increasing from 25% to 50%.
Customers and their brokers do not need to do anything differently when recording bonuses during in application; the system will automatically apply the relevant calculations. 100% of annual and quarterly bonus will continue to be used for income multiples.