Barclays has launched a Green Home Mortgage, offering lower rates of interest for borrowers purchasing an energy efficient new-build home. Customers will get 10 basis points off Barclays’ standard mortgage range.
This comes off the back of the Government’s Green Finance Taskforce recommending that lenders should work towards promoting awareness and mainstreaming a consideration of green factors into their mortgage lending decisions.
With such a large lender offering a discount to encourage borrowers to choose an energy efficient house, this is a real boost for environmental campaigners. However, there are some limitations – it is only available on new-build properties as they have to be A or B EPC Energy Efficiency Rated – and initially only a handful of house builders will partner with Barclays on the scheme. On it’s own, it is certainly not a reason to choose a new-build home over an older property but if you are buying one anyway and the 10bp difference makes Barclays the cheapest lender available to you, then borrowers may be tempted to opt for it.
If a lender as mainstream as Barclays is jumping on the green bandwagon, it will only be a matter of time before other lenders follow suit, which will focus buyers’ minds on a property’s Energy Efficiency Rating like nothing else.