Leeds Building Society has launched green additional borrowing, giving its existing mortgage members the option to borrow more against their homes to fund energy-efficient improvements.
The move follows the Society’s rollout of additional borrowing earlier this year and enables brokers to support clients aiming to upgrade their property’s EPC rating.
The new lending stream can be used for improvements such as installing solar panels, replacing insulation, adding air source heat pumps, upgrading boilers, fitting double or triple glazing or adding EV charging points.
Products are available across residential and buy-to-let, including a 2-year fixed rate at 4.19% up to 75% LTV, a 2-year fixed rate at 4.69% up to 90% LTV, and a buy-to-let 2-year fixed rate at 5.19% up to 75% LTV.
All products come with no fee, a free standard valuation and tapered early repayment charges of 2.5% and 1.5%.
Leeds Building Society said the offering is aligned with growing demand among homeowners and landlords for ways to reduce energy consumption and environmental impact.
“The application process is available via Mortgage Hub and powered by MSO, with brokers able to assess cases beforehand using additional borrowing affordability calculators.
“The product is available to clients holding existing residential, buy-to-let or shared ownership mortgages with the Society.
Martese Carton, director of mortgage distribution at Leeds Building Society, said: “Borrowers are becoming increasingly aware of the need to take control of their energy consumption and the environmental impact of their home.
“The UK has some of the oldest housing stock in Europe, meaning Britain’s homes remain among the least energy efficient.
“With changes on the horizon, we are expecting to see more requirements on energy efficiency which could impact landlords in particular.
“To improve a home’s EPC rating from a D to a C, the average estimated cost ranges from £6.8k to £12.5k and we believe that green additional borrowing provides a solution to our mortgage holders who are planning to improve the energy efficiency on their homes.”
The Society said it was the first lender to offer enhanced affordability for A or B EPC-rated new homes based on projected fuel bill savings.
Chloe Timperley, green mortgage campaign lead at the Green Finance Institute, said: “The GFI welcomes this valuable new addition to the market from Leeds Building Society.
“The Green Additional Borrowing product aligns with our Green Home Finance Principles and provides subsidised finance for energy-efficient home upgrades – actively supporting customers who live in colder, draughtier homes with higher running costs to make improvements.
“This new product also supports the GFI’s Built Environment Programme mission to expand access to green home finance solutions, such as Green Mortgages, to make warm, affordable, healthy and low carbon homes accessible to everyone.”
