Homebuyers who choose a property with an Energy Performance Certificate (EPC) rating of A are eligible for £500 cashback and for high EPC-B rated homes, £250 cashback is available.
Nationwide’s green boost could see first-time buyers get their hands on total cashback of £1,000 because they already qualify for a cash incentive on the mainstream first-time buyer range and can add the green reward on top.
There are no restrictions on the type of property that can be bought, and the incentive is open to home movers as well as first-time buyers.
News of the society’s green reward mortgage comes as Defaqto analysis reveals that there are now 26 green mortgage deals on the market for borrowers to choose from.
Barclays, NatWest and RBS all now offer green mortgages as part of their ranges. The lowest rate on the market, according to Defaqto, is a 1.13 per cent two-year fixed rate from NatWest at 60 per cent loan to value. The cheapest non-green fixed rate mortgage deal on the market is offered by First Direct at 1.24 per cent.
Properties with an energy efficiency rating of A or B are generally eligible, although Foundation Home Loans has a range of products for homes with a rating of C or above.
On Nationwide’s cashback deal, Henry Jordan, director of mortgages, said: “Our homes are where we have one of the biggest individual impacts on climate change, but more needs to be done to deliver a long-term plan to improve energy efficiency of new and existing homes.
“We remain committed to helping make the homes we lend on greener and more sustainable, which is why we have launched our new cashback offer for property purchases. By launching Green Reward, we hope it will encourage people to consider the energy efficiency of the property they are buying.”