The Greener Mortgages range is available for first and next-time buyers and includes Help to Buy equity loan options.
It aims to encourage buyers to purchase homes with an Energy Performance Certificate or Predicated Energy Assessment rating of A or B.
It has both two and five-year fixed rate options, and is available at 65 per cent, 75 per cent and 85 per cent loan to value (LTV) for standard residential mortgages and at 55 per cent and 75 per cent LTV for Help to Buy equity loan products.
The products are subject to a £995 fee and rates start at 1.25 per cent, which the lender says is 0.1 per cent lower than equivalent standard products.
The lender has also partnered with Carbon Neutral to ensure that for every Greener Mortgage sold Virgin Money will fund sustainable energy projects, such as reforestations, hydro and solar projects. It is also aiming to plant 100,000 trees from the sale of Greener Mortgages alongside Carbon Neutral Britain.
Virgin Money’s chief commercial officer Hugh Chater said: “We want to give our customers the chance to make a greener choice in their finances.
“Our Greener Mortgages reward customers who choose a more energy efficient new build home with a lower interest rate, coupled with funding renewable energy and tree planting, meaning their mortgage is kind to both the environment and their wallet.”
Cuts to BTL rates
The lender also announced that it would cut a range of its core, portfolio and product transfer buy-to-let (BTL) products effective from today.
On the core BTL side Virgin Money will cut its two-year fixed at 75 per cent LTV by 0.02 per cent to 1.85 per cent. Both its five-year fixed at 75 per cent LTV receiving 0.05 per cent reductions taking it to 2.04 per cent and 2.09 per cent respectively.
Virgin Money’s portfolio BTL 75 per cent LTV product will also be cut by 0.02 per cent to 1.95 per cent, with its five-year fixed at 75 per cent LTV also subject to 0.05 per cent reductions.
The reductions on these five-year fixed products take rates to 2.14 per cent and 2.19 percent.
Virgin Money’s two-year BTL product transfer at 75 per cent LTV will be cut by 0.02 per cent to 1.85 per cent and its similar five-year fixed product will decrease 0.05 per cent to 2.09 per cent.