The Co-operative Bank has announced that it is bringing in a slate of green mortgage products, which could potentially secure customers a lower rate.
Customers who apply for one of these mortgages will be able to secure lower interest rates if the property they are buying has an EPC rating of A or B. The slate of green mortgages now being offered by the Co-Op provides buyers with a choice of either a five or two-year fixed-term loan. The loan-to-value (LTV) available ranges from 80% to 95%, while the starting rate is 4.30% when it comes to buyers who are new to the Co-Op.
There is a fee connected to the loans, which has been set at £999. This is the case for both the five- and two-year fixes. To be able to get the 4.30% starting rate, the EPC rating for the property must be either an A or a B. It also has to be valid and be the most up-to-date EPC that is available for that property.
Some new build homes do not have an EPC, but the Co-Op has accounted for that. Either a Standard Assessment Procedure (SAP) or Predicated Energy Assessment (PEA) will be acceptable as an alternative.
John Ward from the Co-operative Bank told Mortgage Finance Gazette that:
“This product is the next step in our journey towards helping to green the UK’s housing stock.”
Mortgage advisors with CeMAP training will be as aware as anyone of the importance of green mortgages, so this news is very welcome.
