Co-operative Bank launches green mortgage product

The Co-operative Bank has announced the launch of a new green mortgage product range, offering borrowers a lower interest rate when purchasing a property with an A or B EPC rating. 

The new product range offers either a two or five-year fixed term mortgage at 80-95% LTV with interest rates starting at 4.30% for new-to-bank customers. 

The EPC rating must be valid (within 10 years) and is the latest EPC available for the property.

For the purchase of new build properties, where an EPC may not be available, a Predicated Energy Assessment (PEA) or Standard Assessment Procedure (SAP) rating available will be accepted from the housing developer or vendor. New build houses will be restricted to 90% LTV for houses and 85% LTV for flats.

The range is available through The Co-operative Bank for Intermediaries and affiliated mortgage brokers.

The new green mortgage product builds on existing support tools that The Bank offers to its customers to help them to reduce their carbon footprint. These include two energy efficient additional borrowing products, a free energy saving home improvement plan for existing mortgage customers, and a Sustainability Hub which guides customers to make more sustainable choices. 

John Ward, director of products, said: “At The Co-operative Bank, we’re really pleased to be launching our green mortgage product for new customers who are choosing to purchase an energy efficient home. This product is the next step in our journey towards helping to green the UK’s housing stock. By purchasing homes with higher EPC ratings, customers can access reduced interest rates, reduce their energy bills and do their bit for the planet.”