Virgin Money has launched Greener Mortgages, 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 five-year fixed rate mortgages which come with cashback to help towards valuation costs.
The products are available at 65%, 75% and 85% 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, a carbon offsetting initiative, for each Greener Mortgage sold, Virgin Money will fund sustainable energy projects around the world such as reforestation, hydro and solar to offset five tonnes of carbon emissions, the equivalent of those produced by an average UK home over a 12-month period. Together, Virgin Money and Carbon Neutral Britain are also aiming to plant 100,000 trees from the sale of Greener Mortgages.
Around 15% of the UK’s total carbon emissions come directly from residential homes and, in a survey of more than 1,000 of its customers, Virgin Money found that 67% of people are keen to live a greener life and 86% understand the steps that need to be taken to address climate change.
The survey also found that tackling climate change is important to 78% of people and the pandemic has made 34% think more about their environmental impact. Almost three quarters of those surveyed (74%) said they are actively taking steps to reduce the impact they have on the environment.
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 of Carbon Neutral Britain, added: “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.”
