Nationwide Building Society is on Friday (8 February) launching a further borrowing product exclusively available to customers wanting to improve the energy efficiency of their existing home.

The product is known as Green Additional Borrowing.

Existing Nationwide mortgage customers wanting to fund non-structural, energy efficient home improvements from a list of acceptable measures will benefit from a 0.50bps rate reduction on the Society’s existing range of two-year fixed and tracker further advance rates. This will mean that rates, including the discount, will be available from 2.29%.

Customers can borrow between £5,000 and £20,000 up to a maximum LTV of 85%. No product fee is payable, but all reservations are subject to a £99 booking fee.

By opting for Green Additional Borrowing customers have an open market choice of suppliers giving them the opportunity to select a national brand or a local firm, whichever they prefer.

“Energy bills continue to rise and many customers are looking to make energy efficient home improvements to try to reduce their bills in the longer term,” said Tracie Pearce, head of group mortgages at Nationwide.

“Green Additional Borrowing allows existing Nationwide mortgage customers, who are looking to make their home more energy efficient, the chance to borrow at a competitive rate of interest, with rates 0.50% lower than our standard further advance rates.

“We see this product as complementary to the Green Deal, which we have welcomed.

“Green Additional Borrowing offers an alternative way of funding larger home improvements and can be used if the customer’s preferred approach does not meet all the Green Deal requirements.”