Dudley Building Society and TSB are the latest building societies to offer green mortgages. The products are designed to help homeowners fund energy efficiency improvements to their homes and in some cases offer them a cheaper interest rate for doing so.
TSB’s new range is open to existing residential or buy-to-let mortgage customers and will allow them to borrow £10,000 or more – up to 85 per cent loan-to-value (LTV) – to fund a range of green home improvements which include loft and wall insulation, a heating upgrade or solar panel installation.
Customers must spend a minimum £1,000 for green improvements as part of the overall total advance, and will receive rate reductions of 0.5 per cent (with no product fee) where it is used to fund improvements that will reduce emissions. Where the borrowing is to fund a mixture of green and other improvements, only the green part of the borrowing will benefit from the reduced rate.
Dudley’s products include two remortgages and a further advance product. Available for both homeowners and landlords, the borrower is required to make a commitment to improve the EPC of the property.
For homeowners looking to improve their property’s rating to B or above, a new 80 per cent LTV mortgage comes as a two-year fix at 3.79 per cent. It includes £950 cashback with no fee.
Dudley also offers self-build mortgages, with rates from 4.09 per cent with advance or arrears stage payments available.