Existing residential and buy to let customers can borrow a minimum of £10,000 up to 85 per cent loan to value (LTV). The money can be used to fund renovations such as loft and wall insulation, solar panel installation and heating upgrades.
A minimum of £1,000 must be spent on green improvements.
If all of the money is used to fund emission reducing improvements, customers will be offered a rate reduction of 0.5 per cent with no product fee. Where the borrowing funds a mixture of ecological and standard improvements, then just the part of the loan used for environmentally friendly changes will benefit from the reduced rate.
Nick Smith, head of mortgages at TSB, 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.”