New 0% Green Mortgage Product from Nationwide

Catherine Alexander
Partner

If you have an existing mortgage with Nationwide Building Society and you are looking for further borrowing, they have now reduced the interest rate on their green additional borrowing products to 0%.

These new products will become available from Thursday 1st June 2023 via Nationwide mortgage advisers and mortgage brokers, existing borrowers will be able to get between £5,000 and £15,000, up to a maximum of 90% LTV with either a two or five-year fixed period.

Nationwide hopes to incentivise its borrowers to make green home improvements. All of the loan must be used to fund non-structural, energy-efficient home improvements, e.g., solar panels, heat pumps, window upgrades, boiler upgrades, cavity wall insulation, loft insulation or an electric car charging point.

With the UK’s 29 million homes producing some 16 per cent of the country’s emissions and a commitment to reach the net zero target by 2050, Nationwide’s approach aims to contribute towards that goal through retrofitting properties.

For example, if you borrowed the maximum £15,000 over a five-year term, the monthly payment on the existing green additional borrowing product at a rate of 3.89% would be £275.50. For those taking out the new version, the payment would reduce by £25.50 per month to £250, meaning the you would save £1,530 over the full term of the fixed period.

It is important to remember that once the fixed period ends borrowers will need to switch to a new rate to avoid going onto the lenders Standard Variable Rate (SVR).

Now that Nationwide have launched this new product, it will be interesting to see how other lenders respond. Watch this space.

References: https://www.nationwidemediacentre.co.uk/

Your home may be repossessed if you do not keep up repayments on your mortgage.