UK Bank Offers Green Home Mortgage on Select New Builds

UK bank Barclays has launched a Green Home Mortgage program, offering home buyers preferential interest rates and savings of more than £1,300 (equivalent to $1,800 USD) on energy-efficient new build houses. Next week, UK homeowners will be able to tap lower interest rates when purchasing a home with an A or B Energy Performance Certificate (EPC) rating.

The offer is valid for select UK builders including Barratt Homes, Berkeley Group, Countryside Properties, Crest Nicholson and Redrow Homes, and Barclays plans to expand the program throughout this year.

Barclays Mortgages will offer preferential interest rates on two and five-year fixed rate mortgages up to 90% loan-to-value (LTV) and Help To Buy mortgages up to 75% LTV. Homebuyers could save up to £750 ($1,055) on a £150,000 ($211,000) mortgage over the five-year fixed term. When combined with the energy savings of the higher EPC-banded homes, consumers could save up to £1,335 ($1,800), according to Barclays.

Barclays’ head of mortgages Hannah Bernard said: “We are increasingly hearing from our mortgage customers that they’re interested in purchasing an energy efficient home. Given Barclays commitment to supporting our customers’ transition to a low-carbon and sustainable lifestyle, we have compelling reasons to launch this pioneering product.