Monday, December 6, 2021
Finance

TSB launches range of green additional borrowing products

TSB

Customers will benefit from rate reductions of 0.50% with no product fee where it is used for reducing the emissions from their homes

TSB has launched a range of green additional borrowing mortgage products aimed at encouraging people to make their homes environmentally friendly.

Customers will benefit from rate reductions of 0.50% with no product fee where it is used for reducing the emissions from their homes. Where the borrowing is to fund a mixture of ‘green’ and other improvements, then just the green part of the borrowing will benefit from the reduced rate.

Existing TSB buy-to-let (BTL) or residential mortgage customers can borrow £10,000 or more (up to 85% loan to value) to fund a range of green home improvements which include loft and wall insulation, a heating upgrade or solar panel installation. Customers must spend a minimum amount of £1,000 for ‘green’ improvements as part of overall total advance.

This latest move follows TSB’s tree-planting scheme – to offset the impact of house-moves, a new tree is planted for each mortgage sold where the customer moves house.

Nick Smith, TSB’s head of mortgages, said: We are all conscious of the need to do more to protect the environment and we know that a lot of our customers are also keen to play their part in tackling climate change. So we’ve decided to give our mortgage customers a helping hand, by offering them a discount when they borrow to invest in the energy efficiency of their homes.

Dr Rhian-Mari Thomas OBE, chief executive of the Green Finance Institute, added: Innovation and transparency will be essential for scaling-up the green mortgage market and accelerating the decarbonisation of UK homes.

She said: Today’s announcement about the launch of TSB’s Green Additional Borrowing mortgages – which align with the industry-backed Green Home Finance Principles, established by the Green Finance Institute – is a welcome contribution to creating a thriving market for green mortgages in the UK.

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