Starting this week, buying an energy efficient new-build home could mean making savings on your mortgage. Proving that it pays to be green, Barclays Mortgages have just announced the launch of their Barclays Green Home Mortgage. Barclays’ new ‘green’ mortgage product offers preferential rates for purchasing energy efficient new-build homes. This is the first time a mortgage product which offers preferential rates, based on the Energy Performance Certificate (EPC) rating of a new build, has been made available in UK Retail Banking.
So long as the new build home you are looking to purchase comes with an EPC rating of A or B, you may be eligible for lower interest rates. Initially, this is limited to purchases from a select few house builders that Barclays have partnered with, but there are plans to roll out the product much more widely through 2018. For now, it applies to new builds from Barratt Homes, Berkeley Group, Countryside Properties, Crest Nicholson and Redrow Homes.
The products on offer are for 2 and 5-year fixed rate mortgages up to 90 percent loan to value (LTV) or Help to Buy mortgages up to 75 percent. With the reduced interest rates, this means mortgage savings of up to £750 on a typical mortgage of £150,000 over a five-year fixed rate term. Not to mention the potential savings from reduced energy bills, which can be up to £585 a year on a typical three-bed property.
To further encourage the move to more sustainable living, Barclays have stated their plans to extend their ‘green mortgage’ to other house types and homebuying scenarios in 2018 and beyond. Hannah Bernard, Head of Barclays Mortgages, has said:
“…we are committed to expanding the Barclays Green Home Mortgage suite so that it is available to a wide range of customers and property types by 2019.”
With Barclays making headway in the Green finance space and the government’s independent Green Finance taskforce, it seems that preferential rates for houses with efficient EPC ratings may become the way of the future. At the very least, when you consider the possible savings, the financial reasons for choosing homes with well-performing EPC ratings of A or B are starting to become very compelling.
Take a look at the New Homes section on our website today for a list of all our new homes developments. One of our New Homes specialists would be happy to talk you through our current portfolio of properties that would meet Barclays’ Green Home Mortgage requirements. If you are looking for an energy efficient home, when browsing for properties for sale on Chancellors, you will be able to find their EPC rating as part of the property details.