Designed to encourage homeowners to invest in more energy-efficient properties, the loans have fixed rates across either two years or five years with a 95 per cent loan to value (LTV) for residential properties with an A-rated Energy Performance Certificate (EPC).
The two-year loan has a fixed rate of 2.39 percent while the five-year loan is fixed at 2.69 percent. First-time buyers as well as those moving home are eligible to apply and the products are available direct and through intermediaries, the mutual said.
Both loans include a product fee of £999 and an admin fee of £150 for loans of £40,000 to £500,000 for a single property.
Graham Sumsion, Monmouthshire’s lending operations manager, said the new rates supported members trying to buy greener homes.
“This product launch compliments our pilot on the society-led Valuer Project”, he said, “which sees the society partner with Sero, Rightmove and RICS to understand how consumers who purchase energy efficient homes may be able to borrow more using a modified affordability assessment.”
The Valuer Project set out to determine the difference in cost and value between a home with an EPC rating of A to C and one rated D to G.
Monmouthshire’s green mortgage trial was run alongside a retrofitting project that gave its existing borrowers a free whole-home survey to figure out how they could make their properties more energy efficient.
