UK: ‘Green mortgages’ launched by Barclays

In April, Barclays launched a new mortgage, known as ‘Green mortgages’ that offer cheaper mortgage rates for borrowers who buy more energy efficient homes.

The product is available to customers purchasing a newly built house made by a group of five partner homebuilders and offers cheaper mortgage rates to those who are buying new build homes with an A or B Grade Energy Performance Certification (EPC) rating. The five partner housebuilders are Barratt Homes, Berkeley Group, Countryside Properties, Crest Nicholson and Redrow Homes.

The new deal offers homeowners the benefit of lower interest rates on both two and five-year mortgages and is available to those who deposit as little as 10%. It’s also accessible to those on a Help to Buy mortgage with a deposit of at least 25%.

The cheaper rates give a discount of 0.1% off the corresponding traditional Barclays mortgages, and when combined with the additional savings from reduced energy bills from running a more efficient house, customers on a mortgage of £150,000 could see savings of up to £1,335 over a period of five-years according to Barclays.

Barclays plans to extend these new lower interest rates to all new build homes built by all homebuilders by the end of the year.

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