A new range of what are known as “green” mortgage products has hit the market courtesy of Keystone Property Finance, and it features both two and five-year fixed rate deals.
Green mortgages work by offering financial incentives to borrowers to take steps to improve the energy efficiency of their properties. This new range from Keystone potentially provides landlords with a reduction in mortgage rates of 15 points in comparison to a standard mortgage product, should they meet the requirements.
These include achieving an Energy Performance Certificate (EPC) rating of between A and C and having owned the property in question for at least five years. The reduced rates on offer ensure that, with the five-year fixed rate mortgage, they begin at 3.19%, while for the two-year product, the starting rate is 3.04%.
This group of mortgage loans covers any type of property, ranging from multi-unit to houses in multiple occupation (HMOs), and the top sum available to borrow is £1 million.
Keystone has announced the launching of this set of green products as part of a wider overhauling of its product range. Speaking to Financial Reporter, its CEO David Whittaker said:
“The climate crisis is the greatest challenge of our, or indeed any, generation and the only way we can solve it is if we all play a part, including the mortgage and property sectors.”
It is likely that advisors who finish CeMAP training courses will encounter more green mortgages in the future, as lenders look to capture ecologically concerned customers.