NatWest has launched a green remortgage product that offers a preferential interest rate to new or existing customers who are looking to remortgage an energy-efficient property.
The product offers a discounted interest rate to customers remortgaging a property with an Energy Efficiency Rating of A or B.
Through NatWest and Royal Bank of Scotland, this will be available through direct channels including in branch, over the phone and via the website.
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Every home must have an Energy Performance Certificate (EPC) when it is built, sold or rented – this gives the property an energy efficiency rating from A or 100 (most efficient) to G or 0 (least efficient) and is valid for 10 years.
The new offering will be available at max 85% loan-to-value (LTV) and will apply to residential homes up to a maximum value of £600,000.
Products available will be 2- and 5-year fixed rates with no product fee and will be available to both first-time buyers and home movers across the UK.
The new product supports the bank’s pledge to help customers become more energy efficient with an ambition that 50% of the bank’s mortgage book is at or above EPC C or equivalent rating of C by 2030.
Miguel Sard, managing director of home buying and ownership at NatWest Group said: “We were one of the first lenders to bring our Green mortgage to market last year and have seen a lot of success in rewarding customers for making greener decisions. We experienced increasing customer demand for a green re-mortgage product and we’re happy to respond to this.
“One of the core parts of our purpose as a bank is to help address the climate challenge and as the principal banking sponsor supporting COP26 in Glasgow later this year, we want to act as a catalyst in supporting the reduction of the carbon footprint from UK residential properties.”