Nationwide launches Green Additional Borrowing for eco-friendly home improvements
Nationwide Building Society has launched a new mortgage product to encourage people to make their homes more environmentally friendly, by offering cheaper rates for green home improvements.
The loans are exclusively available to the Society’s existing mortgage borrowers and offer rate reductions of up to 0.69% from Nationwide’s existing no-fee, two and five-year fixed further advance rates.
Rates for Green Additional Borrowing will start from just 1.0%, with no product fee.
What’s the catch?
There isn’t one. The lender is pretty flexible about how the money is spent. At least half of the Green Additional Borrowing product must be used to fund a range of sustainable enhancements, from solar panels and boiler upgrades to traditional insulation and electric vehicle charging stations.
However, there are no restrictions on suppliers – members are able to select any national or local firm when making the improvements. They can borrow between £5,000 and £25,000, up to a maximum of 90 per cent LTV.
Henry Jordan, Nationwide’s director of mortgages, said: “It’s becoming ever clearer there is an urgent need to reduce the carbon emissions from our homes. We believe meaningful incentives are the only realistic way to help people make their homes more sustainable, which is why we today launched our new Green Additional Borrowing product.
“This new loan is the first product we are launching as part of our wider commitment to make £1 billion available to kickstart green home improvements. In this case, existing Nationwide members can borrow up to £25,000 at highly competitive rates.
“With more than 1.5 million homes on our mortgage balance sheet, we believe offering this new loan can make a real difference as we play our part in helping to tackle the climate crisis and help members to do the same.”