Kensington Mortgages has launched a mortgage it claims to reward environmental home improvements – the eKo Cashback Mortgage.
Whether an individual is buying an older home, or just remortgaging, Kensington will pay £1,000 for improving the property’s energy efficiency evidenced on their Energy Performance Certificate (EPC).
The eKo Cashback Mortgage offers the cashback when a homeowner improves their energy efficiency within the first year of completion. Homeowners just need to increase their energy rating by 10 SAP points – the equivalent to insulating a hot water cylinder and installing low energy lighting, or putting in solar panels, or loft insulation.
The lender says the product is aimed at all individuals, across all properties in the UK. Starting from 3.04% at 75% LTV, the eKo mortgage also comes with free valuations, and free legal advice on remortgages.
What counts as energy efficiency improvement:
|Energy Efficiency Improvement||Points|
|1||Swap to a condensing boiler||47|
|2||Install double glazing (UPVC)||4|
|3||Upgrading roof insulation||13|
|4||Low energy lighting||2|
|5||Insulating hot water cylinder||8|
|7||Cavity wall insulation||13|
|8||Internal / external insulation of solid walls||20|
Mark Arnold, CEO of Kensington Mortgages, said: “Many people are becoming increasingly conscious of their carbon footprint and want to reduce it. So making energy efficiency improvements in your home is a no-brainer – you can help combat climate change and save on your bills at the same time.
“With Kensington’s new eKo mortgage you can also be rewarded in the form of cashback. We are particularly excited about this new product because unlike other green initiatives, the eKo Cashback Mortgage is targeted at efficiency improvements to pre-existing properties, rather than focusing on investment in new builds, offering the opportunity to help combat climate change to a much broader set of borrowers.”
Kevin Roberts, director of Legal & General Mortgage Club, added: “Like all industries, the housing and mortgage markets must react to the threat of climate change and the importance of reducing carbon emissions.
“Renovating existing housing stock is a crucial part of this mission and that means incentivising consumers who want to improve the energy efficiency of older homes.
“The launch of Kensington’s eKo Cashback Mortgage is a positive step in the right direction that will help to increase choice for consumers interested in green mortgage products.”