Mort­gage deal launch for greener new-builds

Birmingham Post - - PERSONAL FINANCE -

A MA­JOR lender is to of­fer home own­ers “green mort­gages”, with lower in­ter­est rates for peo­ple who choose to buy an en­er­gy­ef­fi­cient new-build home.

The Bar­clays Green Home Mort­gage will be avail­able to those buy­ing an A or B EPC (en­ergy per­for­mance cer­tifi­cate) en­ergy ef­fi­ciency-rated home from an ini­tial group of five house builders, with plans to part­ner with more builders by the end of the year.

Bar­clays Mort­gages will of­fer the pref­er­en­tial in­ter­est rates on two and five-year fixed-rate mort­gages for peo­ple with a de­posit as low as 10 per cent and for Help to Buy mort­gages for peo­ple with a de­posit as low as 25 per cent.

It said that with 0.1 per­cent­age point dis­counts off the equiv­a­lent tra­di­tional Bar­clays Mort­gage prod­ucts, those buy­ing a new-build prop­erty could po­ten­tially achieve a sav­ing of £750 on a typ­i­cal mort­gage of £150,000 over a five-year fixed-rate term - on top of the sav­ings peo­ple will make from hav­ing cheaper en­ergy bills.

Bar­clays’ part­ner house builders are Bar­ratt Homes, Berke­ley Group, Coun­try­side Prop­er­ties, Crest Ni­chol­son and Redrow Homes.

Han­nah Bernard, head of Bar­clays Mort­gages, said: “We are in­creas­ingly hear­ing from our mort­gage cus­tomers that they’re in­ter­ested in pur­chas­ing an en­ergy-ef­fi­cient home.

“We’re look­ing for­ward to ex­pand­ing our of­fer to more cus­tomers and through more house-builders later this year.”

Rachel Springall, a per­sonal fi­nance ex­pert at Money­facts. co.uk, said: “It’s great to see Bar­clays launch this new ini­tia­tive to of­fer bor­row­ers a cheaper mort­gage if they buy a greener new-build home.

“The fact that the two and five-year fixed mort­gages will be made avail­able to bor­row­ers with as lit­tle as 10 per cent de­posit will be a de­light to those strug­gling to amass a large pot.

“Home own­ers are likely to be pleased to save some cash off their mort­gage and not just their en­ergy bills by choos­ing a more greener build com­pared to a less en­ergy-ef­fi­cient prop­erty.

“How­ever, as with any mort­gage, bor­row­ers would be wise to com­pare deals on their over­all cost be­fore they com­mit.”

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Bar­clays has launched a Green Home Mort­gage this week

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