Green mortgage for a green home (Source: Forbes.com)
The people of 2023 are a considerate bunch. I don’t mean to sound insincere with that statement if it sounds that way! Global warming, climate change, energy efficiency and the like is a very hot topic in 2023 and people are becoming more and more conscious about being eco and environmentally friendly with the things they do. One thing that builders and lenders are promoting now is people purchasing a green home and an accompanying green mortgage.
Getting A Green Home Is The Way Of The Future
We have already gone in to the details of what a green home is and why they are the future for sustainable and eco friendly building in our blog post from last year. So this blog is going to focus on the exciting news coming from Barclays Bank. Barclays have always been a lender ahead of the game with introducing new schemes, new mortgage lending plans to benefit certain types of buyers, and generally being a good forward thinking lender.
In a communication to all subscribing mortgage advisers this morning, Barclays have announced that to support borrowers looking to purchase new build energy efficient homes, they are launching a new 90% loan to value 5-year fixed mortgage product. This product will only be available on purchases of brand new houses that have been specifically built with things like solar panels, energy efficient boilers, energy efficient electrics, eco insulation etc.
The introduction of this product is a move carefully designed by Barclays to incentivise both purchasers who are conscientiously trying to be more environmentally friendly and also to incentivise property developers to make more eco friendly properties. The idea being that Barclays will provide competitive mortgage products and rates, so more people can purchase more of the properties. A great move in our mind as we firmly support reducing our carbon footprint and taking better care of the planet.
What Are The Details Of The New Product?
The new product is available immediately through mortgage intermediaries like ourselves. It carries a £999 fee which can be added to the loan if needed. With the introduction of this new product, Barclays are removing a previous similar product which was a 5-year fixed loan at 6.24% at 90% LTV with no fees.
The new product is at a rate of 4.70%, available for 5-year fixed loans. Barclays will charge a £999 fee to use the product which can be added to the loan. You can use this product up to a maximum of 90% LTV i.e. 10% deposit minimum. Loans can be anywhere from £5,000 minimum to £570,000 maximum. So, if you were purchasing a £600,000 new build green home with a 10% deposit of £60,000 you could benefit from this product with a £999 fee added to the loan.
Your loan would be fixed for 5 years at a rate of 4.70%. If you took the £540,999 loan over a standard term of 25 years, your repayments would be £3,069 a month. Saving you almost £500 a month compared to the old product, which has now been removed.
Looking For A Green Mortgage?
Are you looking for a green mortgage on a green home? Get in touch with our specialist mortgage lenders today to see how we can help. Our initial mortgage consultations with our advisers are completely free of charge.
