Royal Bank of Scotland, part of the NatWest Group, has announced the launch of its first “Green Mortgage” for clients. A recent investigation by the bank found that 70% of NatWest Group clients are concerned about climate change but were unsure how to reduce their carbon footprint.
The new product will offer a preferential interest rate to new or existing clients who are purchasing an energy efficient property.
The Green Mortgage, available starting October 28, will offer a discounted interest rate to clients who purchase a property with an energy efficiency rating of A or B.
Every home must have an Energy Performance Certificate (EPC) when it is built, sold or rented; This gives the property an energy efficiency rating from A or 100 (most efficient) to G or 0 (least efficient) and is valid for 10 years. .
The Green Mortgage supports the bank’s commitment to helping clients become more energy efficient with the ambition that 50% of the bank’s mortgage portfolio is equal to or greater than EPC C or equivalent rating of C by 2030.
The new offering It will be available at 60%, 75% and 85% LTV and will apply to both residential homes and new construction.
The announcement also follows the recent launch of Royal Bank’s pilot partnership with the fintech app, CoGo. The app gives bank customers access to a tracker to calculate their carbon footprint in real time based on their spending habits, while offering curated suggestions on how they can reduce their environmental impact with the option to offset emissions.
Miguel Sard, Managing Director of Home Ownership and Buying at NatWest Group, said: “We want to help home buyers make greener decisions, especially as properties account for 15% of the UK‘s total climate emissions and one of central parts of our purpose as a bank is to help address the climate challenge. Our clients are increasingly interested in purchasing energy efficient homes, and by offering those clients a lower mortgage rate, we want to have a positive impact on the environment. This is just one of the many ways Royal Bank supports and encourages greener options. “
As mentioned by Scottish News, Andrew Day, sustainability director at Telford Homes, added: “It is a pleasure to see Royal Bank’s corporate climate strategy reward homeowners with a discounted green mortgage. This approach corresponds well to the growing demands of intergenerational customers for new sustainable housing, lower running costs and continuing to help make a positive contribution to the climate emergency. “