The Co-operative Bank has launched a new range of green mortgage products, offering new eligible customers a lower interest rate when purchasing a home with an A or B EPC rating.
The product range offers a fixed term mortgage of two or five years, at a Loan-to-Value (LTV) of 80-95%, with interest rates from 4.30% for new bank customers.
The new products come with a fee of £999, with a fixed term of 2 or 5 years, at an LTV of 80-95%, with interest rates from 4.30% for new bank customers, with no changes to the application process.
Customers must purchase a property with an EPC rating of A or B and the EPC rating must be valid (within 10 years) and be the most recent EPC available for the property.
For the purchase of new build properties, where an EPC may not be available, an available Predicated Energy Assessment (PEA) or Standard Assessment Procedure (SAP) assessment will be accepted from the residential developer or seller.
The product is accessible with an LTV of 80% to 95%, with the exception of new construction homes, which are limited to 90% LTV for houses and 85% LTV for apartments.
John Ward, product director at Co-operative Bank, commented: “At The Co-operative Bank we are very pleased to be launching our Green Mortgage product for new customers choosing to purchase an energy efficient home. This product is the next step in our journey to helping green the UK housing stock. By purchasing homes with a higher EPC rating, customers can benefit from lower interest rates, reduce their energy bills and do their bit for the planet.”