Leeds Building Society has introduced a new stream of green additional borrowing aimed at helping homeowners improve the energy efficiency of their properties, as lenders continue to respond to rising demand for sustainable home upgrades.
The move expands the Society’s additional borrowing range, launched earlier this year, and enables existing borrowers to access funds specifically for energy-efficient improvements.
The Society said brokers will now be able to support clients looking to raise capital for measures that could improve a property’s EPC rating.
The funding can be used for installations such as solar panels, upgraded insulation, air source heat pumps, double or triple glazing, boiler replacements and electric vehicle charging points.
The products include two-year fixed rates at 4.19% up to 75% LTV and 4.69% up to 90% LTV for residential borrowers, and a two-year fixed rate at 5.19% up to 75% LTV for buy-to-let landlords. All products come with no fee, a free standard valuation and tapered early repayment charges of 2.5% and 1.5%.
Applications can be submitted through Mortgage Hub, powered by MSO, and are open to existing residential, buy-to-let and shared ownership borrowers. Affordability can be checked in advance using the Society’s updated additional borrowing calculators.
“The UK has some of the oldest housing stock in Europe, meaning Britain’s homes remain among the least energy efficient”
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.”
She added that improving a home’s EPC rating from D to C typically costs between £6.8k and £12.5k, and green additional borrowing offers a practical route for customers planning such upgrades.
The Society has previously led on energy-efficiency lending, becoming the first provider to offer enhanced affordability on the most efficient new-build homes by modelling lower running costs for properties rated A or B.
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.”
