NatWest launches green mortgage range; ups rates
NatWest has released its first set of green mortgages, which offer a reduced interest rate for energy efficiency homes.
Borrowers for properties with an energy efficiency rating of A or B will enjoy the reduced rates.
The new products are available at 60 per cent LTV to 85 per cent LTV and for a two-year fix, rates start at 1.33 per cent and for a five-year fix, at 1.50 per cent.
Each product commands a £995 fee and comes with £250 cashback.
NatWest points to research it carried out that shows 70 per cent of its customers are concerned about climate change and unsure of what how to reduce their carbon footprint.
On top of this, earlier this month the Intermediary Mortgage Lenders Association issued research that showed that 71 per cent of lenders and 74 per cent of advisers believe government action towards borrowers is necessary to stimulate the green mortgage market, and 52 per cent of both groups want to see more incentives for lenders to develop green mortgages.
Aside from this, NatWest has also upped rates across its purchase and remortgage ranges, by a maximum of 0.25 per cent and 0.34 per cent, respectively.
Notable product changes for two-year fixes include the 80 per cent LTV purchase product increasing from 1.99 per cent to 2.24 per cent and the 85 per cent LTV remortgage rate rising from 2.90 per cent to 3.24 per cent.
In the five-year fix range, the most eye-catching rate rises comprise the 85 per cent LTV purchase product going from 3.04 per cent to 3.29 per cent and the 85 per cent LTV remortgage offering going from 3.18 per cent to 3.29 per cent.
On the new green mortgage range, NatWest managing director of home buying and ownership Miguel Sard says: “We want to help home buyers to make greener choices, particularly as properties make up 15 per cent of the UK total climate emissions and one of the core parts of our purpose as a bank is to help address the climate challenge.
“Our customers are increasingly interested in purchasing energy efficient homes and by offering those customers a lower mortgage rate, we want to have a positive impact on the environment. This is just one of many ways NatWest is supporting and encouraging greener choices.”