“We are all aware of the need to do more to protect the environment and we know that many of our customers also want to play their part in the fight against climate change.”
TSB has launched a line of green supplemental loan mortgage products aimed at encouraging people to make their homes environmentally friendly.
Customers will benefit from 0.50% rate reductions at no product charge when used to finance upgrades that will reduce emissions from their homes. When the loan is intended to finance a mixture of “green” improvements and other improvements, only the green part of the loan will benefit from the reduced rate.
Existing BST lease or residential mortgage customers can borrow £ 10,000 or more (up to 85% LTV) to finance a range of green upgrades including attic and wall insulation, an upgrade of the heating or the installation of solar panels. Customers must spend a minimum of £ 1000 on ‘green’ upgrades as part of the overall total advance.
This latest move follows TSB’s tree planting program – to offset the impact of the moves, a new tree is planted for every mortgage sold when the client moves.
Nick Smith, TSB Mortgage Manager, said: “We are all aware of the need to do more to protect the environment and we know that many of our customers also want to play their part in the fight against climate change. So we decided to give our mortgage clients a helping hand by offering them a discount when they borrow to invest in the energy efficiency of their home.
Dr Rhian-Mari Thomas OBE, Managing Director of the Green Finance Institute, added: “Innovation and transparency will be key to developing the green mortgage market and accelerating the decarbonization of housing in the UK. Today’s announcement of the launch of TSB’s Green Additional Borrowing Mortgages – which aligns with the industry-backed Green Home Finance principles set out by the Green Finance Institute – is a welcome contribution to the creation of a thriving market for green mortgages in the UK.