Saffron Building Society has launched a green mortgage and savings account in response to the government’s strategy to “accelerate the growth of green finance” announced last year.
In particular, the mortgage aims to encourage borrowers to upgrade current housing stock to a better energy efficiency rating (EPC).
A rate reduction of 0.1 percentage points is available if borrowers make improvements to the energy efficiency of their property within six months of completing the mortgage.
Aaron Strutt, product and communications director at Trinity Financial, told Chloe Cheung from FT Adviser: "Most people understand that we need to do more to protect the environment and it is good to see Saffron taking action to join the government's plan for a greener future.
"It can be difficult for borrowers to opt for some of these deals because they usually are more expensive than standard mortgage products and they generally do not pay as much interest as the market-leading saver rates."